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Salazar vows to 'clean up' agency that regulates US oil rigs

Obama 'disappointed' over stalled Senate oil liability cap
Washington (AFP) May 18, 2010 - US President Barack Obama voiced his frustration with Republican lawmakers Tuesday over holdups to a measure that would make oil companies pay for the response to spills they have a hand in. "I am disappointed that an effort to ensure that oil companies pay fully for disasters they cause has stalled in the United States Senate on a partisan basis," he said in a statement. "This maneuver threatens to leave taxpayers, rather than the oil companies, on the hook for future disasters like the BP oil spill," he said.

"I urge the Senate Republicans to stop playing special interest politics and join in a bipartisan effort to protect taxpayers and demand accountability from the oil companies." Questions of ultimate liability have raged in the wake of the April 20 explosion on the Deepwater Horizon that killed 11 eleven workers. The rig sank to the sea floor, where the ruptured riser pipe has been spewing crude oil into the Gulf for almost a month, threatening the entire region's fragile coastline. US law requires oil firms pay up to 75 million dollars for economic damages, but Democrats in Congress and the president himself have tried to raise such a cap in the wake of the massive Gulf oil spill from the BP-leased Deepwater Horizon offshore oil rig.

Lawmakers remain divided, however, with Republican James Inhofe blocking a second attempt to pass a bill on the expedited course of "unanimous consent." He expressed concern for independent oil producers that would be included in the measure and said while "certainly we need to raise these limits... where it should be raised to I don't know." Democratic Majority Leader Harry Reid said he was for "no cap." He said "10 billion dollars limit is too small" a liability, noting that the "damage from the oil spill in the Gulf now is 14 billion dollars already."
by Staff Writers
Washington (AFP) May 18, 2010
Interior Secretary Ken Salazar pledged to revamp the US agency that regulates offshore drilling and admitted faults Tuesday as lawmakers grilled him about the Gulf of Mexico oil disaster.

"We need to clean up that house," Salazar said of his agency's Minerals and Management Service (MMS), amid scathing criticism of the body for being too lenient on enforcement of safety standards in offshore drilling.

He promised MMS "more tools, more resources, more independence and greater authority," in the wake of the Gulf of Mexico disaster at a BP-leased rig that ruptured an undersea well that continues to spew crude into the water.

President Barack Obama's administration has announced a break-up of the agency's leasing and regulatory functions into two separate entities.

While Salazar told the Senate Energy and Natural Resources Committee that "there are some bad apples at MMS," he insisted however that the majority of its 1,700 employees were "good public servants."

Amid the blame being lobbed at the MMS, Obama himself joined in by slamming it as being too "cozy" with the companies it regulates.

"To the extent that MMS employees were involved in any kind of negligence here or any other kind of failure, they will also be held accountable," Salazar told lawmakers.

"One of the things that I hope happens as a result of this incident is that it's another wake-up call to all of us who have this collective responsibility to move forward with a new energy future."

Last week, one MMS official told a hearing in New Orleans that the oil and gas industry largely policed its own drilling operations in the Gulf of Mexico with little government supervision.

And an official also said the regulatory agency did not enforce compliance with its "safety alerts" on underwater blowout preventers and allowed oil companies to inspect their own drilling equipment.

Salazar's tense interaction with lawmakers came a day after Chris Oynes, a top MMS official overseeing offshore energy, announced his retirement amid the criticism.

BP reported further progress Tuesday in containing the spill, saying that a tube inserted into the leaking oil pipe was siphoning off some 40 percent of the crude gushing into the Gulf, twice as much as a day earlier.

The British energy giant reckons about 5,000 barrels, 210,000 gallons of crude, is leaking each day, although analysis from independent experts suggests the flow rate could be many times that.

The Deepwater Horizon rig exploded on April 20, killing 11 workers. It sank two days later, fracturing the mile-long riser pipe which is now streaming crude into the water some 50 miles (80 kilometers) off the Louisiana coast.



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ENERGY TECH
BP says containing one fifth of spill; political pressure mounts
New Orleans, Louisiana (AFP) May 17, 2010
US President Barack Obama is launching a commission to probe the huge Gulf oil spill amid a growing political firestorm as BP said Monday a tube inserted into the gushing leak was siphoning 20 percent of the flow. The independent commission will be established by executive order in the coming days, an administration official said, and will supplement existing government inquiries into what h ... read more







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