Companies seek to end moratorium on deepwater drilling [lawsuit against federal gov]

[wordpix]

Source: CNN

Companies seek to end moratorium on deepwater drilling

By the CNN Wire Staff
June 21, 2010 3:19 a.m. EDT


(CNN) -- As oil continues gushing into the Gulf of Mexico from a ruptured undersea well, a federal judge will hear arguments Monday from companies seeking an end to a temporary moratorium on deepwater drilling.

The six-month ban, instituted by the government last month, halts all drilling in more than 500 feet of water and prevents new permits from being issued.

But a company that provides boats and equipment to the offshore drilling industry says in a lawsuit that the government has no evidence that existing operations pose a threat to the gulf.

Hornbeck Offshore Services LLC and other oil service companies named as plaintiffs in the case say they want a court order declaring the moratorium invalid and unenforceable. A federal judge will hear their arguments Monday morning.

more

Read more: http://www.cnn.com/2010/US/06/21/gulf.oil.disaster/index.html

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I heard on NPR this am that these companies say the government "has to prove there's a threat." A THREAT? What more PROOF do they want that a DISASTER's occurred? :puke: :thumbsdown:

NPR report also said the Southern Poverty Law Center is joining the government in defense of the moratorium. :applause:

I hope the judge throws this suit to the wind because we taxpayers do not need to spend money defending the moratorium against these greedy idiot a-holes.

And lest we forget that MOST of the deepwater rigs are registered in foreign countries. The Coast Guard has only to look at documents for such rigs to "guarantee" safety---the CG does not inspect physically, as that is done in the foreign nations. So I wonder what foreign nations are behind this suit, too.

[Demeter]

1. They can go to hell and sit on a hot coal

or sign over the entire value of the company as a bond against further "incidents" and drill to their heart's content.

[Botany]

2. " ... no evidence that existing operations pose a threat to the gulf."

[wordpix]

14. Plaintiffs: "That ain't evidence, that's just a shiny orange pelican out for a stroll"

:puke: :cry:

[dipsydoodle]

3. Not sure who owns most of he rigs

I think the Deepwater Horizon was built in S, Korea.

On one of the business news channels , maybe Bloomberg , they mentioned that most of those rigs are more than 25 years old and so rig builders should be good for investment in the near future.:shrug:

[CountAllVotes]

9. some of these rigs were built in the 1930s

during the WPA years. They've been sitting there rotting away while the rich spend and consume more and more oil.

Too bad that they cannot seem to wake the hell up and realize that the 1930s are long past and it is time for all of these oil companies to upgrade/replace their systems.

In the meantime, shut them down and FUCK BP!


:kick:

[wordpix]

11. most deep & MODU rigs are foreign-registered---article here about safety, jobs, tax evasion issues

Foreign Rigs, Tax Evasion Dominate Gulf Coast Drilling

House Committee Wants to Americanize Offshore Fleet

by Betsy Glassman
June 18, 2010 ©Words & Pictures Communications

BP’s oil spew and foreign vessel operations on the outer continental shelf (OCS) were the focus of a June 17 hearing held by the Coast Guard Subcommittee of the House Committee on Transportation, which found that foreign rigs dominate drilling in the Gulf of Mexico, creating tax evasion and safety inspection problems.

The Deepwater Horizon exploratory rig that exploded April 20, killing eleven and smothering the Gulf of Mexico in oil, was a foreign mobile offshore drilling unit (MODU) built in Korea, registered in the Marshall Islands and owned by Transocean, Ltd., a company incorporated in Switzerland, “it’s assumed to avoid US tax,” said Subcommittee Chair Elijah Cummings (D-MD). Transocean’s tax in Switzerland is 16 percent, compared to 35% in the US.

Chairman Cummings stunned with his opening statement: “The Coast Guard can’t say” how many foreign-flagged MODUs are operating on the OCS because “they are not required to announce their arrival.” Devising a rule for such announcement began in 2006 but “it’s not done,” which is “tragically unacceptable,” he added.

Rep. Frank LoBiondo (R-NJ) said the number of vessels operating under the US flag has plummeted and many are now operating “under flags of convenience…We don’t know what vessels are in US waters or what they’re doing.”

All foreign-flagged vessels must comply with the laws of their respective nations and the US concerning safety inspections, but Transportation Chairman James Oberstar (D-MN) noted, “Some have low standards… Who verifies the Marshall Islands is doing proper inspections?” He referenced a dispute between BP and Transocean regarding maintenance of the Deepwater Horizon, and asked if the Coast Guard has the capability to take over inspections from the Minerals Management Service (MMS).

The MMS is charged with drilling inspections and according to Mary Kendall, Inspector General for the Department of the Interior, there are currently only 50 inspectors for 4000 rigs operating in the Gulf. Speaking before the House Natural Resources Committee at a separate hearing the same day, she reported “a dearth of regulations” for MMS inspections with “little direction regarding what and how to inspect.”

The Coast Guard is responsible for ensuring all other regulations are met by both US and foreign vessels. Rep. Don Young, (R-AK) lamented, “We’ve neglected the Coast Guard all these years. We ask them to do missions like taking on oil spill responsibility without providing the money.” Chairman Cummings said he is working with the Obama Administration to restore cuts to the Coast Guard immediately.

Foreign-flagged vessels including MODUs can operate on the OCS only with a Coast Guard Certificate of Compliance, which requires an annual security and safety examination. Referring to “bribery in third world countries,” Rep. Gene Taylor (D-MS) questioned whether a piece of paper stating a foreign-flagged vessel meets all regulations is adequate. He admonished witness Admiral Kevin Cook of the Coast Guard, “You don’t know who inspected …it could be no one.”

Cook responded that the Coast Guard inspects documents of all foreign vessels “to the extent we can verify” but admitted, “We weren’t there” for hands-on inspections in foreign countries.

The subcommittee appeared in bipartisan agreement about the need to tighten restrictions on foreign vessels and “Americanize” the OCS fleet. Mr. Young bemoaned the fact that, “Most deepwater rigs are not American.” Chairman Oberstar declared, “We need to Americanize the vessels operating in the US Economic Zone.” Witness David Matsuda, the Department of Transportation’s Acting Maritime Administrator, said that increasing the number of US-flagged vessels “would spur US shipbuilding.” Mr. Young referred to the Jones Act, which restricts foreign vessels from transporting cargo between points in the US, including on the OCS. He reported that many non-US vessels go ashore for supplies, a violation of the act: “The Jones Act is not being enforced and we’re chipping away at the American fleet.” Mr. Young recommended to Adm. Cook that he come up with a specific rule so that “a foreign vessel is out if a US vessel is available.”

OCS regulations require employers of vessels to hire US citizens or resident aliens, but exemptions are allowed if employers can demonstrate an insufficient number of US “qualified and available” personnel. Mr. Cummings stated that more than 6700 foreign workers now man crews under exemptions, representing nearly 10% of vessel workers. He said he could not believe there were not enough American workers to fill those positions.

Congressmen also questioned skimming operations, the number of American vs. foreign vessels available for cleanup and how regulations such as the Jones Act can ensure that US-flagged vessels get most of the work. Mr. LoBiongo said he’s received reports that US vessels were offering to help but were being turned down. Adm. Cook responded he did not know of such cases.
Rep. Corrine Brown (D-Fl), in contrast, called for large skimmers to protect her state and she didn’t care where they came from. She thought one was in Norway. “I want the big one,” she stated emphatically, holding up a printed photo of a large vessel. “How do I get it---the big one?”

[Art_from_Ark]

4. Foreign registration

This reminds me of all those oil spills that were originating from Liberian-registered tankers back in the '70s. I still have a cassette tape recording of an old AP radio newscast from 1976 which reported that the skipper of a Liberian tanker that ran aground in the Philadelphia area was arrested on pollution charges.

[h9socialist]

5. Corporate Double-think!

"Under the spreading chestnut tree, I sold you, you sold me."

For those who thought Orwell was only writing about Stalinist Russia this is testament to the ability of capitalism to engage in doublethink. If they believe that the government as "no evidence" that is prima facie evidence that corporate hacks have been taught to disbelieve their own senses, and believe their own lies.

[papadog]

6. Too Broad A Brush

Instead of "Inpecting and Clearing" the rigs that are safe in the Gulf they shut everything down adding insult to injury. I'm no fan of BIG OIL but I am a fan of workers feeding their families. As is often the case it's the "small" people that are affected the most. Put the bastards in jail who are responsible for this shit, (especially at MMS who betrayed the trust of the American People) and let those who are within regulatory specs go back to work.

[AlbertCat]

8. a fan of workers feeding their families.

Yeah.... well we here HATE workers feeding their families and so does the Obama Administration!

:eyes:

These workers have nothing whatsoever to fall back on for 6 months? Their companies cannot do something for their valuable workers during this moratorium? They aren't in some kind of union that can help....that has a plan for just such situations? These oil rig workers live pay check to pay check? (or should that be "pay cheque to pay cheque"?) These workers are destitute....for 6 months? Or at least until wells are thoroughly inspected by an independent agent?

Maybe these kind of delays should be figured into the equation for workers in this dangerous kind of business. Perhaps the Judge will do something for the workers, and not just the oil companies.

[papadog]

10. I hope you're right.

[wordpix]

13. These families have $100 million for starters, thanks to Obama's deal with BP

so I think they'll survive for at least 6 months.

[wordpix]

12. bullshit, only 33 rigs have been shut down and most are foreign-registered

THIS IS A BULLSHIT LINE TO BRING DOWN OBAMA---DON'T BELIEVE IT

[orbitalman]

7. SCREW these companies. If I Were The Judge....

I'd rule that they must pitch in and help STOP THE LEAK first, then the moratorium lifting can be considered.

Edit:addition