Donald A. Migliori, Esq.

forestsaintregisOil and Offshore

Nov 8, 2013 (3 years and 10 months ago)

90 views



F



B
eyond



P
etroleum:





The Coexistence of the Oil and Fishing Industries:
At What Cost?

From the Mouths of Babes

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Deepwater Horizon Disaster

3


April 20, 2010

4

The Damage Done

5

BP has said this “accident”
was unforeseeable…

Notice

Ixtoc Oil Spill 1979

On June 3, 1979, the Mexican government's oil company
Pemex was drilling a deep oil well in the Gulf of Mexico
when the well suffered a blow out resulting in one of the
worst oil spills in human history. At the time of the
incident the drilling was conducted at about 11,800 feet
below the sea floor.

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In the initial stages of the spill, an estimated 30,000 barrels of oil per day
were flowing from the well. In July 1979, the pumping of mud into the well
reduced the flow to 20,000 barrels per day, and early in August the pumping
of nearly 100,000 steel, iron, and lead balls into the well reduced the flow to
10,000 barrels per day. A total of 3.3 million barrels entered the Gulf of
Mexico as a result.

Compare current BP 2010 disaster: 60,000 barrels a day

Notice

Ixtoc Oil Spill 1979

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An average of about 10 to 30 thousand barrels a day were discharged into
the Gulf. The well was finally capped on March 23, 1980,
nearly 10 months
later
. Ultimately, 71,500 barrels of oil impacted 162 miles of U.S. beaches.

Notice

Ixtoc Oil Spill 1979

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2000


In February, BP crew in the Gulf of Mexico pushed
the wrong button severing the rig from the blowout system
causing an oil leak.




-

Mineral Management Service Safety Alert No.186, March 3, 2000


2002


California officials allege BP falsified inspections of
fuel tanks at a Los Angeles refinery and more than 80% of
the facilities didn’t meet requirements to maintain storage
tanks without leaks or damage. BP settled a lawsuit
brought by the South Coast Air Quality Management
District for more than $100m.






-

Reports at BP over years find history of problems
,







The Washington Post
, June 8, 2010,







by Abraham Lustgarten and Ryan Knutson

Safety Violations

9


2005


A BP Texas City refinery exploded, killing 15
people. The investigation uncovered that a warning
system failed and that “significant process safety issues
exist at all five U.S. refineries, not just Texas City.”


2006


In March, more than 200,000 gallons of oil spilled
from a corroded hole in the Prudhoe Bay pipeline in
Alaska. Inspectors found that several miles of the steel
pipe had corroded to dangerously thin levels. BP had
received multiple warnings about their Alaskan pipelines
since 2002.






-

Reports at BP over years find history of problems
,







The Washington Post
, June 8, 2010,







by Abraham Lustgarten and Ryan Knutson




Safety Violations

10


October 25, 2007, the Justice Department settled with BP at $20
million in penalties and three years' probation, $12 million of
criminal fine.







-

May 19, 2010 Panel I of a Hearing of the House and








Transportation and Infrastructure Committee


2008


In September, a section of gas pipeline on an Alaskan slope
blew apart, flying nearly 1000 feet through the air before landing on
the tundra.


2009


Three separate accidents plagued the same Alaskan
pipeline system, one of which was a near
-
catastrophic explosion.
Congress sent a letter to BP stating these accidents were a result of
malfunctioning safety and backup equipment.







-

Reports at BP over years find history of problems
,









The Washington Post
, June 8, 2010,








by Abraham Lustgarten and Ryan Knutson




Safety Violations

11

The blowout preventer is BP’s “
key failsafe
mechanism






Testimony of Lamar McKay, President of BP






May 19, 2010, Panel I of a Hearing of
the House and




Transportation and Infrastructure
Committee


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Safety Violations

Deepwater Horizon seamen discovered a

BOP leak
two

weeks before the blowout in early April of 2010.


On July 21, 2010

it was revealed that 45%

of BOP's fail.







-

Regulators Failed to Address Risks in Oil Rig Fail
-
Safe Device
,






New York Times
,
June 20, 2010.


Safety Violations

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14

Tony Hayward, CEO of BP






“What the hell did we do to deserve this?”












BP Chief Tony Hayward






Oil Spill’s Blow to BP’s Image May Eclipse Costs
,






New York Times
, April 29, 2010









15

BP’s Public Statements


Day 9


“First is this whole issue of the ultimate safety device, the
blowout preventer failing. If the blowout preventer had functioned
as intended, we would be dealing with a very serious industrial
accident, but we wouldn’t be dealing with an oil spill.”










BP CEO Tony Hayward





In His Own Words: Forbes Q&A with BP’s Tony Hayward
,






Forbes.com
, May 18, 2010, by Christopher Helman



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Safety Violations

“The Gulf of Mexico is
a very big ocean. The
amount of volume of
oil and dispersant we
are putting into it is
tiny in relation to the
total water volume.”



-

May 14, 2010


Tony Hayward, BP CEO

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BP’s Public Statements


Day 24

“The oil is on the surface…”

“There aren’t any plumes.”

BP sampling showed “no evidence”

that oil was suspended in large masses

beneath the surface.

Meanwhile, a twenty
-
two mile long, six mile wide and more than a
thousand feet deep plume was being reported by the University of
South Florida and other Southeastern educational institutions.










BP CEO Tony Hayward






BP CEO disputes claims of underwater oil plumes
,









AP
, May 30, 2010








Willful and Wanton Conduct

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Tony Hayward, BP CEO:

“I think the
environmental impact
of this disaster is
likely to be very, very
modest.”



-

May 18, 2010


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BP’s Public Statements


Day 28


“The Gulf of Mexico spill response plan is four inches thick. It’s
approved every two years.”











BP CEO Tony Hayward





In His Own Words: Forbes Q&A with BP’s Tony Hayward
,






Forbes.com
, May 18, 2010, by Christopher Helman



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BP’s Public Statements


Day 27



“…the only technology [the oil companies] seem to be relying upon is
a Xerox machine to put together [their] response plans…”








-

Representative Edward J. Markey



“Drilling Down on America’s Energy Future: Safety, Security, and Clean Energy”





Hearing before the Committee on Energy and Commerce










June 15, 2010


BP Oil Spill Response Plan

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The covers of the five response plans
are 4 different colors, but the content is
90 percent identical. Like BP, three
other companies include references to
protecting
walruses
, which have not
called the Gulf of Mexico home for 3
million years.”

MR. HAYWARD: This wasn't our accident. This was a drilling rig
operated by another company. It was their people, their systems, their
processes.



“We are responsible, not for the accident, but we are responsible for
the oil and for dealing with it and cleaning the situation up.”

MR. STEPHANOPOULOS: You're not responsible for the accident?

MR. HAYWARD: The drilling rig was a Transocean drilling rig. It was their
equipment that failed. It's their systems and processes that were
running it.





-

ABC “Good Morning America” Interview with Tony Hayward,




British Petroleum Chairman; Subject: Gulf Coast Oil Spill,








May 3, 2010

Transocean

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Who is Responsible?

Owners of Mississippi
Canyon Block 252 license
where the well was drilled.

As for BP, The Partners
are liable for costs in
proportion to their
holdings.

THE
CORPORATIONS

BP Leased the Deepwater Horizon rig from
Transocean, The world’s largest offshore
drilling firm based in Switzerland.

The Blowout equipment which failed on the
Deepwater Horizon rig was maintained by
Cameron International Corp, a subsidiary of
Transocean.

Halliburton Energy Services Inc, provided
drilling services on the rig. Halliburton was
in the process of cementing the wellhead
when the blowout occurred.

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Corporate Finger
-
pointing

24


“I’d like my life back.”








BP CEO Tony Hayward




B
usiness Insider
, June 2, 2010,




by Gus Lubin











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Tony Haywood, BP CEO

Selling the Fund


The BP Fund: Kenneth Feinberg “Mr. Fairness”


The Oil Protection Act 1990


Multi
-
District Litigation New Orleans, LA


26

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BP Claims Process

BP's USA Today full page
AD on the Claims Process:

June 10th, 2010





"When we talk,
we'll help people
determine what documents they
need. We will be in touch in four
days or less and can issue them
a check right on the spot
.“






-

June 10, 2010

50 million dollars spent by BP on
advertising alone in May 2010.


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What’s happening within the BP
Claims Processing


What’s really happening within


the BP Claims Processing


Compare what our clients were told by BP claims
officials the same time this full page national ad
and PR campaign ran:


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“Well, we don’t actually have any checks… yet”
6/10/2010
(BP claims personnel)


“We may get checks next week…” 6/11/2010







(BP claims personnel)



While BP was claiming it was
“mak[ing] this right,” BP had
policemen and police cars at
every distribution center to
welcome the fishermen.


And for those trying to forget
Hurricanes Katrina or Wilma
or Ivan? “Think of me like an
adjuster…” 6/10/2010





(BP claims personnel)


What’s really happening with the
BP Claims Processing

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BP Claims Process


BP’s “adjusters” are given a script and using a matrix and
intentionally beating down people in need.


As of Tuesday, June 15, 2010, BP adjusters had paid less
than 12% (twelve percent) ($71 million dollars out of an
estimated $600 million) of submitted claims for relief by
individuals and businesses impacted in the Gulf.







-

House of Representatives,








Committee on the Judiciary,










6/15/2001

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BP Fund

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BP Fund

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BP Fund

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BP Fund

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BP Fund

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BP Fund

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Stabilizing the Industry


Lifting the Moratorium on Drilling October 2010


Threats of Pulling out of Gulf


11% of BP’s Revenue from the Gulf


Are the rigs any safer?


Is the fishing industry any more secure?



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