Bureau of Ocean Energy Management, Regulation and Enforcement

Secretary of the Interior Ken Salazar, left, signed a Secretarial Order on Monday that changed the name of the Minerals Management Service (MMS) to the Bureau of Ocean Energy Management, Regulation and Enforcement (“Bureau of Ocean Energy” or “BOE” or "BOEMRE). Salazar split up the agency that oversees offshore drilling to avoid "conflicting missions" of revenue collection and safety oversight.

Secretary of the Interior Salazar also swore-in former Justice Department Inspector General Michael Bromwich, right, on Monday to lead reforms at BOE that will strengthen oversight and policing of offshore oil and gas development. (MMS Press Release)

Federal Judge Reverses Obama Ban on Deepwater Drilling

A federal judge struck down the Obama administration's six-month ban on deepwater oil drilling in the Gulf of Mexico today. U.S. District Judge Martin Feldman in New Orleans ruled that the government rashly concluded that because one rig failed, the others are in immediate danger too. The Interior Department had halted approval of any new permits for deepwater drilling and suspended drilling of 33 exploratory wells in the Gulf. President Obama believes drilling at such depths does not make sense and puts the safety of workers "at a danger that the president does not believe we can afford."

Several companies that ferry people and supplies and provide other services to offshore drilling rigs filed the lawsuit. They argued the moratorium was arbitrarily imposed after the April 20 explosion on the Deepwater Horizon drilling rig that killed 11 workers and blew out the well 5,000 feet underwater. It has spewed anywhere from 67 million to 127 million gallons of oil into the Gulf. Feldman sided with the companies, saying in his ruling the Interior Department assumed that because one rig failed, all companies and rigs doing deepwater drilling pose an imminent danger.

The Center agrees with the ruling. (Wash Post, 6/22/2010)

EPA Supports Superfund “Polluter Pays” Provision

EPA Submits Administration’s Guidance to Congress

The U.S. Environmental Protection Agency today sent a letter to Congress in support of reinstating the lapsed Superfund “polluter pays” taxes.

Superfund is the federal government's program that investigates and cleans up the nation's most complex, uncontrolled or abandoned hazardous waste sites. If reinstated, the Superfund provision would provide a stable, dedicated source of revenue for the program and increase the pace of Superfund cleanup. It would also ensure that parties who benefit from the manufacture or sale of substances that commonly cause environmental problems at hazardous waste sites, and not taxpayers, help bear the cost of cleanup when responsible parties cannot be identified.

The Superfund taxes expired on December 31, 1995. Since the expiration of the taxes, Superfund program funding has been largely financed from General Revenue transfers to the Superfund Trust Fund, thus burdening the taxpayer with the costs of cleaning up abandoned hazardous waste sites. The administration is proposing to reinstate the taxes as they were last in effect on crude oil, imported petroleum products, hazardous chemicals, and imported substances that use hazardous chemicals as a feedstock, and on corporate modified alternative minimum taxable income. Under the administration’s proposal, the excise taxes and corporate environmental taxes would be reinstated for a period of 10 years beginning in January 2011.

More information on the Superfund program

Gulf Spill Hearings

Senate Appropriations Interior and Environment Subcommittee, chaired by Sen. Feinstein, will receive testimony from Interior Dept. Secretary Ken Salazar Wednesday at 10:00 a.m., looking at the pending reorganization of the Minerals Management Service.

House Science Committee will look into response technologies at a hearing on Wednesday at 10:00 a.m. in 2318 Rayburn. Look for a significant discussion on how to address the spill with a significant focus on R&D opportunities to develop new technologies.

House Resources Committee continues its overall look at the spill on Thursday at 10:00 a.m. by focusing on emergency response issues. The hearing is expected to feature state, local and non-governmental officials about the how they write their spill response plans.

Senate Judiciary Marks Up "Environmental Crimes Enforcement Act" – The Judiciary Committee marks up three bills, including Senator Pat Leahy's (D-VT) Environmental Crimes Enforcement Act (S.3466) on Thursday at 10:00 a.m., The bill aims to hold companies accountable for environmental crimes and protect victims by mandating restitution for criminal violations of the Clean Water Act.

Senate Energy will consider bills on Thursday at 10:00 a.m., related to Minerals Management Service (MMS) reform and to offshore drilling: S. 3497, a bill to amend the Outer Continental Shelf Lands Act to require leases entered into under that Act to include a plan that describes the means and timeline for containment and termination of an ongoing discharge of oil; S. 3431, a bill to improve the administration of the Minerals Management service; and other legislation which will be added to the agenda next week.

Senate Commerce Committee's Surface Transportation and Merchant Marine Infrastructure, Safety, and Security Subcommittee will hold a hearing Thursday at 2:30 p.m. on ensuring the safety of our Nation's pipelines. Witnesses will include Pipeline and Hazardous Materials Safety Administration administrator Cynthia Quarterman, Tim Felt of Colonial Pipeline Company (representing the Association of Oil Pipelines), Rocco D'Alessandro of Nicor Gas (representing the American Gas Association), Gary Sypolt of Dominion Energy (representing the Interstate Natural Gas Association of America) and Carl Weimer, executive director of the Pipeline Safety Trust.

Senate Energy to Look at Oil Dependence – The Senate Committee on Energy and Natural Resources will hold a hearing tomorrow at 10:00 a.m. in 366 Dirksen on efforts to reduce oil dependence. The hearing will review policies to reduce oil consumption through the promotion of accelerated deployment electric-drive vehicles. Witnesses will include Patrick Davis, program manager, Office of Vehicle Technologies, Department of Energy; FedEx CEO Fred Smith, Alliance of Automobile Manufacturers researcher Kathryn Clay, Electric Drive Transportation Association president Brian Wynn, Union of Concerned Scientists David Friedman and National Research Council’s Alan Crane.

Senate EPW to Address Superfund – The Senate Environment and Public Works Subcommittee on Superfund, Toxics and Environmental Health holds a hearing Tuesday June 22 at 2:30 p.m. on oversight of the EPA's Superfund Program. Already, Democrats have indicated a willingness to reimpose the Superfund business tax. Witnesses will include EPA's Mathy Stanislaus, GAO's John Stephenson, Lois Gibbs of the Center for Health, Environment and Justice; Helene Pierson of Heart of Camden; former Bush 41 EPA Superfund expert Dr. Win Porter (president of the Waste Policy Center) and Fort Valley, GA mayor Dr. John Stumbo.

House Natural Resources Considers Coal Accountability Bill – The House Natural Resources Committee will hold a hearing Wednesday at 10:00 a.m. on H.R. 5479, the "Coal Accountability and Retired Employee Act of 2010." The bill aims to amend the Surface Mining Control and Reclamation Act of 1977 to provide for use of excess funds available under that Act to provide for certain benefits.

[Source: Maisano, Frank]

CNN Larry King Live "Disaster In The Gulf" Telethon

The Center welcomes donations so that we can provide mitigation services in the Gulf.


A special LARRY KING LIVE telethon focusing on "Disaster in the Gulf: How You Can Help," which will be featuring three charities, so you will be able to choose which one you want to help out. The money raised will go to aid in rebuilding the Gulf Coast.

Celebrity participants include Chelsea Handler, Sting, Tim McGraw, Kathy Griffin, Alyssa Milano, Deepak Chopra, Pete Wentz, Ted Danson, Robert Redford, Harry Connick Jr., Jenny McCarthy, Melania Trump, Ivanka Trump, Aaron Neville, Kerry Kennedy, James Carville and Mary Matalin, Anderson Cooper, Tyson Ritter, Lenny Kravitz, Ian Somerhalder, Edward James Olmos, Philippe Cousteau and more!

All donations for the Gulf Coast Relief Telethon will go to the following three charity organizations:

HELPING COMMUNITIES with UNITED WAY

United Way is offering help to the families along the Gulf that are facing financial, educational and health-related challenges as a result from the economic disruption from this Oil Spill. The United Way Gulf Recovery fund will provide emergency assistance, such as help with food, rent and utilities, and support long-term recovery efforts to rebuild these lives and these communities.

SAVING WILDLIFE with THE NATIONAL WILDLIFE FEDERATION

The National Wildlife Federation Gulf Oil Spill Restoration Fund supports efforts to find and save oiled wildlife, and help recover their delicate ecosystems that make up their nesting and breeding grounds.

RESTORING THE GULF with THE NATURE CONSERVANCY

In response to the Gulf Coast oil spill, The Nature Conservancy has launched their Fund for Gulf Coast Restoration, expanding their efforts for long term recovery for the Gulf of Mexico and habitats along the coast, including salt marshes, oyster reefs, marshlands, beaches and estuaries.
(CNN)

BP Will Not Pay For 6-Month Deepwater Drilling Moratorium

BP Also refusing demands to pay for restoration of the Gulf coast beyond its prespill conditions

Although BP is opposing to pay worker' salaries for the 33 rigs idled by President Obama's 6-month moratorium, BP has agreed to earmark $20 billion for a claimant fund and an additional $100 million for Gulf workers idled by the drilling moratorium.

BP should pay for all restoration costs related to the spill, but President Obama should immediately lift the moratorium. It is causing more harm to the economy in that region and is creating dangerous conditions at the 33 idled rigs. The drilling industry estimates the moratorium will cost rig workers as much as $330 million a month in direct wages, not counting businesses servicing those rigs like machine-shop workers. The $100 million, 0.5% of the total, won't come close to covering collateral damage from the White House's moratorium. (WSJ, 6/21/2010)

BP Claims Payments To Date

According to BP [sigh], to date, more than 65,000 claims have been submitted and more than 32,000 payments made, totaling about $105 million.

According to BP [sigh], its costs related to its oil-spill response have reached $2 billion as it continues work to contain the leak and to pay claims for damages.

EPA's Air, Water & Land Monitoring in the Gulf

An EPA Mobile Command Post in Venice, Louisiana keeps tabs on monitoring and sampling efforts in the field.

EPA data in Google Earth

Open the data (.kmz format) in your Google Earth browser.

View EPA air, surface water, sediment and waste sampling locations in Google Earth.

Read more.

If you don't have Google Earth installed on your computer, get the free download here.

[From EPA Administrator Lisa P. Jackson's Facebook, and EPA BPSpill]

Anadarko Petroleum Corporation versus BP on Gulf Spill

BP's main partner at the Macondo well, Anadarko Petroleum, is declaring that information from investigations of the Gulf oil accident indicates that BP operated unsafely and failed to monitor and react to several critical warning signs during the drilling of the well. Anadarko is a 25 percent partner in the Macondo well and ordinarily would be responsible for a quarter of all cleanup and damage costs.

Anadarko's chief executive, Jim Hackett, believes BP's behavior and actions represent gross negligence or willful misconduct and thus affect the obligations of the parties under the operating agreement. Anadarko will donate to charity and civic groups any proceeds it receives from the sale of oil collected during the cleanup.

BP strongly disagrees with Hackett's allegations. Tony "I want to get back to my life" Hayward, the most controversial figure in the BP leadership, will no longer be in charge of the company's gulf response, according to BP board chairman Carl-Henric "We care about the small people" Svanberg. (Wash Post, 6/19/2010)

Retired General Honore Recommends Stafford Act

Retired General Russel Honore , former commander Joint Katrina Task Force was on C-SPAN's "Washington Journal" this morning recommending that the Stafford Act should be invoked and the Gulf BP Oil disaster should be treated like a war. He is also recommending that BP should not be allowed to make the final decisions. He says that is like having a mugger decide how much money you're going to get from him after he mugs you. He says the governors should be in charge at the state level and the president should declare a national emergency and bring in the Defense Department. He says they could then grid the oil out and attack it systematically with numerous military and civilian boats. The retired general also says we need to mitigate the oil disaster before hurricane season because that will seriously exacerbate the current situation.

The Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act) (Pub.L. 100-707), signed into law November 23, 1988, is designed to bring an orderly and systemic means of federal natural disaster assistance for state and local governments in carrying out their responsibilities to aid citizens. The Stafford Act is an amended version of the Disaster Relief Act of 1974 (Pub. L. 93-288). It created the system in place today by which a presidential disaster declaration of an emergency triggers financial and physical assistance through the Federal Emergency Managaement Agency (FEMA). The Act gives FEMA the responsibility for coordinating government-wide relief efforts. The Federal Response Plan it implements includes the contributions of 28 federal agencies and non-governmental organizations, such as the American Red Cross. (Wiki)

EPA Public Meetings on Hydraulic Fracturing Study

Center Hydraulic Fracturing Evaluation Criteria

The U.S. Environmental Protection Agency (EPA) is hosting four public information meetings on the proposed study of the relationship between hydraulic fracturing and its potential impacts on drinking water.

Hydraulic fracturing is a process that helps production of natural gas or oil from shale and other geological formations. By pumping fracturing fluids (water and chemical additives) and sand or other similar materials into rock formations, fractures are created that allow natural gas or oil to flow from the rock through the fractures to a production well for extraction.

The meetings will provide public information about the proposed study scope and design. EPA will solicit public comments on the draft study plan.

The public meetings will be held on:

July 8 from 6 p.m. to 10 p.m. CDT at the Hilton Fort Worth in Fort Worth, Texas
July 13 from 6 p.m. to 10 p.m. MDT at the Marriot Tech Center’s Rocky Mountain Events Center in Denver, Colo.
July 22 from 6 p.m. to 10 p.m. EDT at the Hilton Garden Inn in Canonsburg, Pa.

-------------------------------------------------------------------------------------

[Postponed- see note below from EPA]
August 12 at the Anderson Performing Arts Center at Binghamton University in Binghamton, N.Y. for 3 sessions - 8 a.m. to 12 p.m., 1 p.m. to 5 p.m., and 6 p.m. to 10 p.m. EDT

EPA POSTPONES SYRACUSE MEETING ON HYDRAULIC FRACTURING STUDY,
NEW DATES COMING SOON

After months of work organizing the New York Hydraulic Fracturing public meetings, the U.S. Environmental Protection Agency today announced that the Syracuse meeting, originally scheduled for this Thursday, August 12th at the Oncenter Complex Convention Center, has been cancelled. The Agency now intends to hold a new public meeting on the study in upstate New York in September and will announce the location as soon as it is confirmed.

EPA was forced to cancel this meeting following a conversation this morning with the Onondaga County Executive’s office, during which they expressed concerns about the ability to complete preparations for the meeting on such short notice. The last minute change to Syracuse was caused by Binghamton University taking several actions to dissuade EPA from holding the meetings at their campus including increasing the cost from $6,000 to almost $40,000. The Agency also reached out to Broome County officials in Binghamton to hold the meeting at the Arena and they pulled out of negotiations with EPA. The Agency searched a 40 mile radius from Corning to Ithaca to Cortland to Oneonta but no options were available for Thursday. Onondaga County officials did not feel they could arrange the necessary security for the potential protests and rallies outside the meeting itself, and EPA respects and understands their decision.

From the beginning, EPA has been committed to ensuring that the public has an opportunity to express their opinions on the study. There are serious concerns about whether the process of hydraulic fracturing impacts drinking water, human health and the environment. To address those concerns and strengthen our clean energy future, EPA announced in March that it will study the potential adverse impact that hydraulic fracturing may have on drinking water and would be seeking input from people across the country. EPA has held had three successful meetings in Fort Worth, Texas, Denver, Colorado and Canonsburg, Pennsylvania, where more than 1200 participants attended, and the Agency is committed to holding a similar meeting in upstate New York.
-------------------------------------------------------------------------------------------------
Natural gas plays a key role in our nation’s clean energy future and hydraulic fracturing is one way of accessing this vital resource. However, serious concerns have been raised about hydraulic fracturing’s potential impact on drinking water, human health and the environment. To address these concerns, EPA announced in March that it will study the potential adverse impact that hydraulic fracturing may have on drinking water.

To support the initial planning phase and guide the development of the study plan, the agency sought suggestions and comments from the EPA Science Advisory Board (SAB)—an independent, external federal advisory committee. The agency will use this advice and extensive stakeholder input to guide the design of the study. Stakeholders are requested to pre-register for the meetings at least 72 hours before each meeting.

More information on the meetings

Obama on Converting Nuclear Warheads to Commercial Fuel

The White House

Notice from the President on the Continuation of the National Emergency with Respect to Russian Highly Enriched Uranium

CONTINUATION OF THE NATIONAL EMERGENCY WITH RESPECTTO THE RISK OF NUCLEAR PROLIFERATION CREATED BY THEACCUMULATION OF WEAPONS-USABLE FISSILE MATERIAL IN THETERRITORY OF THE RUSSIAN FEDERATION

On June 21, 2000, the President issued Executive Order 13159 (the "order") blocking property and interests in property of the Government of the Russian Federation that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of United States persons that are directly related to the implementation of the Agreement Between the Government of the United States of America and the Government of the Russian Federation Concerning the Disposition of Highly Enriched Uranium Extracted from Nuclear Weapons, dated February 18, 1993, and related contracts and agreements (collectively, the "HEU Agreements").

The HEU Agreements allow for the downblending of highly enriched uranium derived from nuclear weapons to low enriched uranium for peaceful commercial purposes. The order invoked the authority, inter alia, of the International Emergency Economic Powers Act (50 U.S.C. 1701-1706) and declared a national emergency to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States posed by the risk of nuclear proliferation created by the accumulation of a large volume of weapons-usable fissile material in the territory of the Russian Federation.

The national emergency declared on June 21, 2000, must continue beyond June 21, 2010, to provide continued protection from attachment, judgment, decree, lien, execution, garnishment, or other judicial process for the property and interests in property of the Government of the Russian Federation that are directly related to the implementation of the HEU Agreements and subject to U.S. jurisdiction. Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), I am continuing for 1 year the national emergency with respect to the risk of nuclear proliferation created by the accumulation of weapons-usable fissile material in the territory of the Russian Federation. This notice shall be published in the Federal Register and transmitted to the Congress.

BARACK OBAMA
THE WHITE HOUSE
June 17, 2010

Obama Continues Emergency Re Russian Fissile Material

The White House

Message from the President on the Continuation of the National Emergency with Respect to Russian Highly Enriched Uranium

TO THE CONGRESS OF THE UNITED STATES:

Section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)) provides for the automatic termination of a national emergency unless, prior to the anniversary date of its declaration, the President publishes in the Federal Register and transmits to the Congress a notice stating that the emergency is to continue in effect beyond the anniversary date. In accordance with this provision, I have sent to the Federal Register for publication the enclosed notice stating that the emergency declared in Executive Order 13159 of June 21, 2000, with respect to the risk of nuclear proliferation created by the accumulation of a large volume of weapons-usable fissile material in the territory of the Russian Federation is to continue beyond June 21, 2010.

It remains a major national security goal of the United States to ensure that fissile material removed from Russian nuclear weapons pursuant to various arms control and disarmament agreements is dedicated to peaceful uses, subject to transparency measures, and protected from diversion to activities of proliferation concern. The accumulation of a large volume of weapons-usable fissile material in the territory of the Russian Federation continues to pose an unusual and extraordinary threat to the national security and foreign policy of the United States. For this reason, I have determined that it is necessary to continue the national emergency declared with respect to the risk of nuclear proliferation created by the accumulation of a large volume of weapons-usable fissile material in the territory of the Russian Federation and maintain in force these emergency authorities to respond to this threat.

BARACK OBAMA
THE WHITE HOUSE
June 17, 2010

Fort Foote Park Group Meets With Senator Barbara Mukulski

Rafiq Munir, Senator Mikulski, Norris McDonald , Joe Henson, Gloria Lawlah
Representatives from the Greater Fort Foote Area Recreational, Cultural, and Historical Council, Inc. (GFF) met with U.S. Senator Barbara Milkulski (D-MD) today to discuss how the community group can provide maintenance services and other enhancements to Fort Foote Park. GFF is seeking a cooperative agreement or memorandum of understanding (MOU) with the National Park Service (NPS) in order to provide landscaping services, weed control, structures, Potomac River coastline amenities and other enhancements. GFF seeks to provide improvements at the park so that more residents of Prince George's County can enjoy this scenic area. Rodman Cannons at the site provide a historical context for the push to provide private maintainance assistance for this park.

Joe Henson, former Maryland State Senator Gloria Lawlah (Maryland Secretary of Aging), Rafiq Munir and Norris McDonald met with Senator Mikulski to share their plans for Fort Foote Park. Senator Mikulski was accompanied by staff members Valerie Twanmoh, Deputy State Director and Nichelle D. Schoultz, Special Assistant to the Senator. Joe Henson is GFF president and Lawlah, Munir and McDonald are members of the board of directors.

The Merchant Marine Act of 1920 - "The Jones Act"

The Merchant Marine Act of 1920 (P.L. 66-261) is a United States Fedearl statute that regulates maritime commerce in U.S. waters and between U.S. ports. Section 27, also known as the Jones Act, deals with cabotage (i.e., coastal shipping) and requires that all goods transported by water between U.S. ports be carried in U.S.-flag ships, constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent residents. The purpose of the law is to support the U.S. merchant marine industry.

Requests for waivers of certain provisions of the act are reviewed by the United States Maritime Administration on a case-by-case basis. The Obama administartion has not seen any need to waive the Jones Act as part of the response to the oil disaster in the Gulf of Mexico. (Wiki, Deepwater Horizon Response)

Q4000 Drilling Platform & Schlumberger EverGreen Burner

The Q4000, left, owned by Helix, is a drilling platform that is being modified to burn oil from the BP Deepwater Horizon oil disaster. BP hopes to get the Q4000 to receive 5,000 to 10,000 barrels a day once it is fully operation. The primary colllection vessel at the site, the drill ship Discoverer Enteprise, has capacity to process 15,000 to 18,000 barrels daily.

The Q4000 will use Schlumberger's EverGreen burner, right, to flare off the siphoned oil, since the platform cannot process or store it. BP says it will use compressed air to make sure it burns cleanly.

The Evergreen burner turns a flow of oil and gas into a vapor that is pushed out its 12 nozzles.

Currently, about 15,000 barrels of oil a day are being siphoned via the cap to the drillship Discoverer Enterprise. The gas is burned, and the oil is eventually off-loaded to a tanker. Both the oil and the gas are being flared at the Q4000 rig.

The decision to burn as much as 10,000 barrels of day of crude has sparked concerns that workers and residents could be exposed to toxic fumes. Such a system has never been used before to dispose of so much oil in a cleanup effort. (The Bellingham Herald, 6/16/2010, Chron, 6/11/2010, Inhabit, 6/9/2010)

National Commission on Deepwater Horizon Oil Spill

The National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling will be co-chaired by former Florida Sen. Bob Graham, left, and former federal Environmental Protection Agency chief William Reilly, right, who ran the agency during the Exxon spill.

The bipartisan Commission, established through Executive Order 13543 and signed by President Barrack Obama on May 21, 2010 , is tasked with providing recommendations on how we can prevent and mitigate the impact of any future spills that result from offshore drilling.

The spill commission's five other members appointed by the White House include:

• Frances Beinecke, president of the Natural Resources Defense Council, an environmental group. She has specialized in marine ecosystems and clean energy.

• Donald Boesch, president of the University of Maryland Center for Environmental Science. He is from Louisiana and is known for his research of the environmental effects of offshore energy development.

• Terry Garcia, a former National Oceanic and Atmospheric Administration assistant secretary who now serves as the executive vice president for mission programs at the National Geographic Society. He was NOAA's general counsel during the Exxon Valdez spill and led the implementation of the restoration plan for Prince William Sound and the Gulf of Mexico.

• Cherry Murray, dean of the Harvard School of Engineering and Applied Sciences.

• Fran Ulmer, University of Alaska Anchorage Chancellor. She was Alaska's lieutenant governor from 1994 to 2002 and served in the state House of Representatives from 1987 to 1994 as a Democrat. She ran for governor in 2002 but lost to Frank Murkowski. She is a former Juneau mayor and has worked on national commissions working on climate change, election reform and fisheries issues.

(Anchorage Daily News, 6/15/2010, The White House)

Remarks by the President to the Nation on the BP Oil Spill

The White House
June 15, 2010
Oval Office
8:01 P.M. EDT

Excerpt

You know, for generations, men and women who call this region home have made their living from the water. That living is now in jeopardy. I’ve talked to shrimpers and fishermen who don’t know how they’re going to support their families this year. I’ve seen empty docks and restaurants with fewer customers -– even in areas where the beaches are not yet affected. I’ve talked to owners of shops and hotels who wonder when the tourists might start coming back. The sadness and the anger they feel is not just about the money they’ve lost. It’s about a wrenching anxiety that their way of life may be lost.

I refuse to let that happen.

(The White House - Full Statement)

BP & White House Agree To $20 Billion Escrow Account

BP Agrees to Account to Handle Claims

BP Chief Executive Officer Tony Hayward and BP America Chairman Lamar McKay, left, and BP Chairman Carl-Henric Svanberg, right, arrive at the White House today for a meeting with President Barack Obama. BP and the Obama administration reached a tentative agreement during the meeting under which the oil company will place $20 billion in an escrow account to pay claims stemming from the spill in the Gulf of Mexico. The fund will be administered by Ken Feinberg, who oversaw the compensation fund for victims of the Sept. 11, 2001, terror attacks. (Wash Post, 6/16/2010)

President Barack Obama and Vice President Joe Biden meet with BP executives in the Roosevelt Room of the White House, June 16, 2010, to discuss the BP oil spill in the Gulf of Mexico. Pictured, from left, are BP CEO Tony Hayward, BP Chairman Carl-Henric Svanberg, BP General Counsel Rupert Bondy, BP Managing Director Robert Dudley, Senior Advisor Valerie Jarrett, Labor Secretary Hilda Solis, Attorney General Eric Holder, and Homeland Security Secretary Janet Napolitano. (Official White House Photo by Pete Souza)

Radioactivity Level Increased at Chinese Nuclear Plant

Daya Bay Nuclear Power Plant in China Visited by Center Staff in 2007

The Hong Kong government has reported that "a very small leakage" occurred on May 23 at the Guangdong Daya Bay nuclear power station, which is located close to Hong Kong and the mainland Chinese metropolis of Shenzhen. Hong Kong's CLP Group holds a 25% stake in the plant. CLP Holdings Ltd., a Hong Kong-listed entity also known as China Light & Power, confirmed there was a "small increase" in radioactive iodine and noble gases in the reactor's cooling water but that the radioactivity level has remained stable in the past two weeks.

There have been no safety issues with China's 11 nuclear plants. The Daya Bay power plant, commissioned in 1994, was the first commercial nuclear power station in mainland China. The plant produces around 14 billion kilowatt hours of electricity a year, 70% of which is imported into Hong Kong. China's Guangdong Nuclear Investment Co. holds a 75% stake in the project.

Center President Norris McDonald and Center Vice President Derry Bigby toured the Daya Bay nuclear power station in 2007. They were accompanied by Center China Office Director Zhang Xiaoping.

Lingao nuclear power station in background

Daya Bay in Background

Containment Dome being readied
Daya Bay Nuclear Power Station has two reactors and construction began on August 7, 1987: Unit 1 (944 MWe) began power operations on August 31, 1993 and Unit 2 (944 MWe) began power operations on February 2, 1994. The reactors were designed and built by the French national company, Framatome (with Chinese participation). Daya Bay Nuclear Power Station has two 984 MWe pressurized-water reactor units at a cost of 4 billion US dollars. Lingao Nuclear Power Station is equipped with two 938 MWe PWR, with two additional reactors being brought on line (one under construction - see dome at left - and plans for one more). (More on China Trip, WSJ, 6/15/2010)

NRC Approves New Uranium Enrichment Facility

URENCO inaugurated its URENCO USA/LES enrichment facility in Eunice, New Mexico on June 2 and received NRC authorization to begin operating on June 10. This first time centrifuge technology has been used in the U.S. to supply enriched uranium to the civilian nuclear industry. When fully operational, the facility will produce sufficient enriched uranium for nuclear fuel to supply approximately 10% of the electricity needs for the US.

The facility is operated by URENCO USA/LES, a US subsidiary of URENCO Ltd. In August 2006, groundbreaking took place for the first nuclear facility to receive a joint construction and operational licence.

URENCO USA aerial shot, May 2010

URENCO USA/LES LES, LLC is a wholly-owned subsidiary of URENCO Ltd. The URENCO USA, New Mexico plant is the nation’s most advanced uranium enrichment facility and will provide a secure domestic enrichment fuel supply source to US nuclear energy companies for many years to come.

The URENCO Group URENCO is an independent international energy and technology group with its head office based in Marlow in the United Kingdom. URENCO operates facilities in Germany, the Netherlands, the United Kingdom and New Mexico in the United States. It Currently URENCO fulfils around 25% of the global enrichment market, and aims to establish itself as the leading global supplier of enrichment and enrichment technology.

Deepwater Development Systems in the Gulf of Mexico

Basic options used in constructing the Gulf's deepwater permanent production platforms.


Fixed Platform (FP) consists of a jacket (a tall vertical section made of tubular steel members supported by piles driven into the seabed) with a deck placed on top, providing space for crew quarters, a drilling rig, and production facilities. The fixed platform is economically feasible for installation in water depths up to 1,500 feet.

Compliant Tower (CT) consists of a narrow, flexible tower and a piled foundation that can support a conventional deck for drilling and production operations. Unlike the fixed platform, the compliant tower withstands large lateral forces by sustaining significant lateral deflections, and is usually used in water depths between 1,000 and 2,000 feet.

Tension Leg Platform (TLP) consists of a floating structure held in place by vertical, tensioned tendons connected to the sea floor by pile-secured templates. Tensioned tendons provide for the use of a TLP in a broad water depth range with limited vertical motion. The larger TLP's have been successfully deployed in water depths approaching 4,000 feet.

Mini-Tension Leg Platform (Mini-TLP) is a floating mini-tension leg platform of relatively low cost developed for production of smaller deepwater reserves which would be uneconomic to produce using more conventional deepwater production systems. It can also be used as a utility, satellite, or early production platform for larger deepwater discoveries. The world's first Mini-TLP was installed in the Gulf of Mexico in 1998.

SPAR Platform (SPAR) consists of a large diameter single vertical cylinder supporting a deck. It has a typical fixed platform topside (surface deck with drilling and production equipment), three types of risers (production, drilling, and export), and a hull which is moored using a taut caternary system of six to twenty lines anchored into the seafloor. SPAR's are presently used in water depths up to 3,000 feet, although existing technology can extend its use to water depths as great as 7,500 feet.

Floating Production System (FPS) consists of a semi-submersible unit which is equipped with drilling and production equipment. It is anchored in place with wire rope and chain, or can be dynamically positioned using rotating thrusters. Production from subsea wells is transported to the surface deck through production risers designed to accommodate platform motion. The FPS can be used in a range of water depths from 600 to 7,500 feet.

Subsea System (SS) ranges from single subsea wells producing to a nearby platform, FPS, or TLP to multiple wells producing through a manifold and pipeline system to a distant production facility. These systems are presently used in water depths greater than 5,000 feet.

Floating Production, Storage & Offloading System (FPSO) consists of a large tanker type vessel moored to the seafloor. An FPSO is designed to process and stow production from nearby subsea wells and to periodically offload the stored oil to a smaller shuttle tanker. The shuttle tanker then transports the oil to an onshore facility for further processing. An FPSO may be suited for marginally economic fields located in remote deepwater areas where a pipeline infrastructure does not exist. Currently, there are no FPSO's approved for use in the Gulf of Mexico.

(MMS)

House Energy & Commerce Committee BP Investigation

MEMORANDUM
May 25, 2010
To: Members of the Subcommittee on Oversight and Investigations
Fr: Chairmen Henry A. Waxman and Bart Stupak, left, Chair of Subcommittee
Re: "Key Questions Arising from Inquiry into the Deepwater Horizon Gulf of Mexico Oil Spill"

According to BP there were three flow indicators from the well before the explosion. One was 51 minutes before the explosion when more fluid began flowing out of the well than was being pumped in. Another flow indicator was 41 minutes before the explosion when the pump was shut down for a "sheen" test, yet the well continued to flow instead of stopping and drill pipe pressure also unexpectedly increased. Then, 18 minutes before the explosion, abnormal pressures and mud returns were observed and the pump was abruptly shut down. The data suggests that the crew may have attempted mechanical interventions at that point to control the pressure, but soon after, the flow out and pressure increased dramatically and the explosion took place.

Further, BP’s preliminary findings indicate that there were other events in the 24 hours before the explosion that require further inquiry. As early as 5:05 p.m., almost 5 hours before the explosion, an unexpected loss of fluid was observed in the riser pipe, suggesting that there were leaks in the annular preventer in the BOP. Four hours before the explosion, during efforts to begin negative pressure testing, the system gained 15 barrels of liquid instead of the 5 barrels that were expected, leading to the possibility that there was an "influx from the well."

A cementer witness stated that the "well continued to flow and spurted." Having received an unacceptable result from conducting the negative pressure test through the drill pipe, the pressure test was then moved to the kill line where a volume of fluid came out when the line was opened. The kill line was then closed and the procedure was discussed; during this time, pressure began to build in the system to 1400 psi. At this point, the line was opened and pressure on the kill line was bled to 0 psi, while pressure on the drill pipe remained at 1400 psi. BP’s investigator indicated that a "fundamental mistake" may have been made here because this was an "indicator of a very large abnormality." The kill line then was monitored and by 7:55 p.m. the rig team was "satisfied that [the] test [was] successful." At that time, the rig started displacing the remaining fluids with seawater, leading to the three flow indicators described above.

Several concerns identified by BP relate to the cementing process. Cement work that was supposed to hold back hydrocarbons failed, allowing the hydrocarbons into the well bore. The float collar used in the cementing process did not initially operate as intended and required 9 attempts with higher than usual pressures to function properly. Moreover, the float test performed after cementing may not have been definitive, leading to concern that there may have been contamination of the cement due to density differences between the cement and the drilling mud.

In addition, key questions exist about whether proper procedures were followed for critical activities throughout the day. Negative pressure testing was initially done on the drill pipe rather than the kill line, even though the drill plan specified that it would be done on the kill line. After anomalous results, the negative pressure testing was conducted on the kill line and ultimately accepted. Evidence suggests that spacer fluid used during the displacement of drilling fluid with seawater did not rise above the BOP to the level required by the drilling plan; this increased pressure in the drill pipe and may have interfered with later pressure testing. In addition, the method of displacing the drilling mud with seawater may have interfered with the monitoring of the flow levels from the well because the mud was transferred to another boat instead of measured in the mud pits. Moreover, mudloggers were not informed when the offloading of drilling mud to the other boat was stopped.

Several concerns about the blowout preventer were identified by BP including the failure of its emergency disconnect system (EDS), the failure of its automated mode function or deadman switch, the failure of the BOP’s shearing functions, and the failure of the remote operated vehicle interventions. The BP investigation has also raised concerns about the maintenance history, modification, inspection, and testing of the BOP.

BP's Deepwater Horizon Oil Spill: Pounds Per Square Inch

From The Oil Drum [Donate to them: because they are a respected source of information]

Fluid (oil and gas) will only move from one place to another if something is pushing it. For the fluid in the reservoir under the Gulf, this force pushing the oil out is the difference in pressure between the oil in the rock, and the pressure in the well. The pressure of the oil in the rock is 12,000 psi. When the well was drilled the pressure of the mud that filled the well was over 13,000 psi and no oil moved into the well. Just before the disaster the fluid in the well was changed from mud to seawater. This lowered the pressure of the fluid in the well below that of the fluid in the rock, a differential pressure now existed, and where there was a passage through which the oil and gas could flow, and they did.

The question has always been – how much? Gas flows more easily through cracks than oil, and the disaster was first evident when leaking gas reached the drilling rig, and then ignited. The BOP then, at least partially, functioned. After the rig sank, the riser also sank, bending the pipe just above the BOP. A couple of days later the flow was suggested at about 1,000 bd, and this then escalated to 5,000 bd. As cameras began to publicly monitor the outlet of the riser the estimates started to grow the flow out of the riser was estimated to be around 8,000 bd, with allowance for leaks, the overall flow was estimated to be perhaps 12,000 bd. Once the broken part of the riser was removed and a cap placed over the well, a significant portion of the escaping oil was captured and could then be measured as it flowed into the surface vessel recovering it. Those values are currently at around 15,500 bd. BP is currently planning on additional capture this week of up to another 10,000 bd, and preparing for a worst case scenario with a flow rate of 80,000 bd.

"The Oil Drum" is published by the Institute for the Study of Energy and Our Future (ISEOF), a 501(c)(3) non-profit corporation.

Obama Appoints Michael R. Bromwich to Head MMS

President Barack Obama has appointed Michael R. Bromwich, left, to head the Minerals Management Service (MMS). The appointment does not require Senate confirmation. Bromwich will reorganize the MMS to eliminate conflicts among the different missions of the agency which include establishing safety standards, regulating industry compliance, and collecting royalties.

Secretary Salazar has announced plans to split MMS into three new divisions – the Bureau of Ocean Energy Management, the Bureau of Safety and Environmental Enforcement, and the Office of Natural Resources Revenue – the most significant in a series of Interior Department reforms launched since January 2009.

Bromwich is a former Assistant U.S. Attorney and Justice Department Inspector General. He is currently a litigation partner in the Washington, D.C., and New York offices of Fried Frank where he heads the firm's Internal Investigations, Compliance and Monitoring practice group.
Prior to joining the law firm, Bromwich served as Inspector General for the Department of Justice from 1994 - 1999. Before his appointment as Inspector General, Mr. Bromwich served as a federal prosecutor in the U.S. Attorney’s Office for the Southern District of New York and as Associate Counsel in the Office of Independent Counsel for Iran-Contra.

Bromwich received his law degree from the Harvard Law School in 1980 and a master’s degree in Public Policy from Harvard’s John F. Kennedy School of Government the same year. He received his undergraduate degree, summa cum laude, from Harvard College in 1976. (The White House)

Active Leases: MMS Gulf of Mexico: Outer Continental Shelf

Gulf of Mexico Region Lease Map

(MMS as of May 18, 2010)

Current Deepwater Activity

Operator / Lease Prospect Name / Rig Name / Water Depth (feet)
Monday, June 14, 2010

1) Shell Offshore Inc. / NOBLE DANNY ADKINS / Tobago / 9,627
2) Shell Offshore Inc. / H&P 205 / Great White / 7,814
3) Statoil Gulf of Mexico LLC / MAERSK DEVELOPER / Tucker / 6,667
4) Noble Energy, Inc. / ENSCO 8501 / Santa cruz / 6,500
5) Eni US Operating Co. Inc. / T.O. MARIANAS / Triton (mc) / 5,376
6) Anadarko Petroleum Corporation / ENSCO 8500 / Red hawk / 5,334
7) Shell Offshore Inc. / T.O. DEEPWATER NAUTILUS / Mensa / 5,292
8) BP Exploration & Production Inc. / T.O. DEVELOPMENT DRILLER III / MACONDO / 5,159
9) BP Exploration & Production Inc. / GSF DEVELOPMENT DRILLER II / MACONDO / 5,132
10) Exxon Mobil Corporation AC / NABORS MODS 201 / Hoover /4,804
11) Shell Offshore Inc. / NOBLE JIM THOMPSON / Vito / 4,038
12) Shell Offshore Inc. / H&P 204 / Princess / 3,797
13) Anadarko Petroleum Corporation / T.O. DISCOVERER SPIRIT / Nansen / 3,681
14) Murphy Exploration & Production Company / NABORS MODS 200 / Front runner / 3,350
15) Shell Offshore Inc. / FRONTIER DRILLER / Glider / 3,243
16) Anadarko Petroleum Corporation / NABORS MODS RIG 150 / Gunnison / 3,152
17) Shell Offshore Inc. / AUGER / Auger / 2,862
18) Noble Energy, Inc. / OLYMPIC INTERVENTION IV / Lost ark south / 2,722
19) LLOG Exploration Offshore, Inc. / NOBLE LORRIS BOUZIGARD / Appaloosa / 2,642
20) Newfield Exploration Company / DIAMOND OCEAN VICTORY / Pyranees / 2,095
21) StatoilHydro USA E&P, Inc. / T. O. DISCOVERER AMERICAS / Krakatoa / 2,036
22) Walter Oil & Gas Corporation / DIAMOND OCEAN VOYAGER / Hummingbird / 1,183
23) Stone Energy Corporation / H&P 206 / Amberjack / 1,030
24) Shell Offshore Inc. / COIL TUBING UNIT / Boxer / 750

Total Deep Water Prospects with Drilling/WO Activity: 24

(MMS)

ESIS, Inc Processes Deepwater Horizon Claims for BP

ESIS, Inc. (ESIS) ESIS was selected by BP to process claims and is currently working at BP's direction to administer claims associated with the Deepwater Horizon incident. ESIS is processing claims according to BP's guidelines as overseen by the U.S. Coast Guard in compliance with the Oil Pollution Act of 1990. ESIS, Inc. (ESIS), a risk management services company and is part of ACE USA, the U.S.-based retail operating division of the ACE Group, headed by ACE Limited (NYSE: ACE).

To date, ESIS has more than 500 claims professionals in 31 field offices in Alabama, Florida, Louisiana, and Mississippi. ESIS uses licensed claims professionals where required.

Founded in 1953 and based in Philadelphia, ESIS offers a range of claims and risk management related services. One of their specialties is catastrophe services, where they have administered claims at more than 170 catastrophes, ranging from other petrochemical incidents such as pipeline leaks and breaks to product recalls.

Specific questions on claims data and guidelines should be addressed to the BP Claims Press Office at either 281 366-6965 or 281 366-0265.

To file a claim, call the Deepwater Horizon response hotline at 1 800 440-0858.

Thirty one dedicated field offices have been established throughout the Gulf region, and more than 500 dedicated processors are on-site in Louisiana, Alabama, Mississippi, and Florida.

Types of claims being administered include property damage, loss of income, business interruption, and/or bodily injury. Filing a claim is free and can be done in three ways:

1. Call 1 800 440-0858. 120 telephone operators are answering calls.
2. File a claim online at www.bp.com/claims.
3. Mail a claim to ESIS, PO Box 17160, Wilmington, DE 19850.

A claim number is assigned, and an adjuster will contact the claimant to verify claim information and explain what documentation is needed to process the claim. The claimant can then fax or bring the documentation to meet with an adjuster at a field office location convenient to him/her. Generally, documentation needed will include:

o Individual loss of income or business interruption claim documentation, such as tax records, trip tickets, wage loss statements, deposit slips, boat registrations, or copies of a current fishing license. Commercial economic loss claims may require additional business specific records.
o Loss of rental claims can include prior occupancy rates, cancellations, tax records, and bookkeeping records.
o Property damage claims can require photographs and replacement or cleaning receipts. Larger property damage claims may require on-site inspection by a claims processor.
o Bodily injury claims will be evaluated on a case-by-case basis. Claimants will need to provide medical records, medical bills, or pharmacy records to support the claim.

Upon verification of claim documentation, the adjuster will explain how and when claim payments will be made. For more information, please visit www.bp.com/claims.

Remarks By President Obama on 4th Trip to Gulf Area

Remarks After Touring Theodore Staging Facility, Theodore, Alabama: June 14

Excerpt

"Now, what I've heard from a number of local officials during my trip today is what I’ve heard from folks on each of the four visits that I’ve made to this region since the Deepwater Horizon explosion happened in April. There’s a sense that this disaster is not only threatening our fishermen and our shrimpers and our oystermen, not only affecting potentially precious marshes and wetlands and estuaries and waters that are part of what makes the Gulf Coast so special -- there’s also a fear that it can have a long-term impact on a way of life that has been passed on for generations."

Remarks After a Roundtable Meeting with Local Residents in Gulfport, Mississippi: June 14

Chimney’s Restaurant
Gulfport, Mississippi

Excerpt

"So we are going to be working with business owners like this, with governors and mayors to make sure that they are made whole as a consequence of this crisis. But we also want to make sure that we are in this for the long haul. And the full effects of this may not be known immediately. They may not be known three months from now and may not be fully known for another six months or a year. We just want to make sure we got structure in place so that people like Missy and George are adequately dealt with."

Remarks at a Gulf Coast Briefing in Gulfport, Mississippi
Coast Guard Station Gulfport

Excerpt

"We also talked about claims to make sure that people here in Mississippi, but throughout the region, are going to be adequately compensated for the damages and the losses that they are experiencing right now. There are still problems with them...The last point I’m going to make, and this is something that’s been repeatedly emphasized, here in Mississippi -- but it’s true in Florida, it’s true in Alabama and it’s true in portions of Louisiana -- there’s still a lot of opportunity for visitors to come down here, a lot of beaches that are not yet affected or will not be affected."

The White House

Bonn Climate Talks Produce Working Document

The thirty-second sessions of the United Nations Framework Convention on Climate Change (UNFCCC) Convention subsidiary bodies took place from Monday 31 May to Friday, June 11, 2010. The venue for the meetings was the Hotel Maritim in Bonn, Germany. The progress made during the two weeks opens the way to deliver the full package of operational measures for consideration, and hopefully passage, in Cancún in December. The draft document puts forward a range of goals for cutting greenhouse gases, including slashing emissions by as much as 85 percent by 2050 compared with 1990 levels, and includes objectives for climate aid and deforestation.

The next round of talks in Bonn in August will address how to share the burden, where to place priorities and the legal status of the post-2012 treaty. The Cancun climate conference will hopefully produce a new international agreement to continue with the goals of the Kyoto Protocol. The final international meeting to adopt a new treat will be in Johannesburg in December 2011. The Kyoto Protocol expires in 2012. (Terra Daily, 6/11/2010)

Events at the Bonn Climate Talks