Noelle Straub, E&E reporter
Federal officials yesterday acknowledged that the government did not have adequate regulations in place for an oil spill the magnitude of the ongoing Gulf of Mexico leak.
Homeland Security Secretary Janet Napolitano said that before the disaster there was an assumption that a blowout preventer — the fail-safe device on the Deepwater Horizon rig — would never fail. Drilling plans were submitted to the Minerals Management Service, the federal agency that oversees offshore drilling, based on that assumption, she added. But she said there were “extensive plans” prepared to respond once the spill happened.
Coast Guard Rear Adm. Peter Neffenger told the Homeland Security and Governmental Affairs Committee the spill “raises a lot of questions” about preparations for a well blowout and that there will have to be a “good hard look” at federal contingency plans and related issues. “We certainly never anticipated an ongoing release of this magnitude over this period of time,” he said.
Chairman Joe Lieberman (I-Conn.) said that while he wished BP PLC had done more to prepare for the possibility of a blowout, MMS ultimately was responsible for ensuring adequate planning. Drilling in deep water, which is more technologically challenging than in shallow water, has increased significantly, but MMS did not put in place any new regulations, he said. And MMS only required a regional response plan rather than one specific to each well.
“I hold the federal government responsible for continuing to issue permits for deepwater drilling without demanding the companies … be prepared to deal with the effects of an accident, an explosion,” Lieberman said.
Lieberman also said there were two “enormous problems” that neither industry nor the government was prepared to deal with: what to do if a well blows and what to do about oil accumulating under water.
Ranking member Susan Collins (R-Maine) said neither federal nor industry officials seem to know how to handle such a large spill and told a BP official that “it feels like you’re making it up as you go along.”
Lamar McKay, chairman and president of BP America Inc., said there are no major regulations requiring a “subsea intervention plan.” He agreed that regulations, planning and the types of capabilities and resources available for a blowout will need to be examined in the wake of the spill.
“What I would say is we’re learning a lot from this,” McKay said. “Anything that would make this a safer and lower probability event should be looked at.”
Lieberman and Collins blasted MMS for choosing not to testify before the committee. Acknowledging that BP officials have fully cooperated with the panel’s inquiry, Collins said, “Sadly, that stands in sharp contrast with the government agency, the MMS, which refused to come testify today.”
Interior Secretary Ken Salazar is scheduled to testify this morning before the Senate Energy and Natural Resources Committee.
Collins also slammed the lack of requirement for MMS to share oil spill response plans with the Coast Guard. “How can that be?” she asked, saying the government should change that immediately. She also criticized an administration-proposed $75 million cut to the Coast Guard budget.
Napolitano staunchly defended the federal government’s response efforts, saying it prepared for the worst-case scenario since day one and has been bringing all resources to bear against the spill.
The Obama administration has been criticized because Napolitano declared the spill an event of national significance, which allows a greater federal response, nine days after the explosion. But Napolitano said no leaks were apparent for the first few days, that the government sprang into action anyway and that the declaration only built on operations already under way.
Sen. John McCain (R-Ariz.) pressed Napolitano on the worst-case scenario and her level of optimism as to when the leak might be stopped.
“Worst-case scenario is that we’ll be at this quite a while,” she responded. “I’m just taking it day by day, and I think that’s what we need to do.”
Lieberman told reporters that he and Sen. John Kerry (D-Mass.), who co-authored a climate and energy bill, along with Senate Majority Leader Harry Reid (D-Nev.) are talking to their colleagues about offshore drilling provisions in the measure. The bill includes a moratorium on new drilling pending a federal 30-day review of the cause of the spill, and Lieberman said he and Kerry are open to adding other provisions such as proposals to raise the $75 million cap oil companies must pay for economic damages.
White House to launch independent panel
The White House will create an independent commission to investigate the massive Gulf of Mexico oil spill and make recommendations to avoid such disasters in the future, an administration official confirmed yesterday.
The commission will be similar to those established after the Three Mile Island nuclear incident and the Challenger space shuttle explosion and examine a wide range of issues. President Obama is expected to sign an executive order to create the panel soon.
Interior and the Coast Guard are conducting a joint investigation into the spill, but the White House commission would have no current government officials.
Reps. Lois Capps (D-Calif.) and Ed Markey (D-Mass.), who earlier this month introduced legislation to create such a commission, welcomed the news. Their measure would establish a 15-member commission that would hold public hearings and have subpoena power.
“To ensure that our scrutiny matches the depth and breadth of this human, economic and environmental disaster, we need an independent commission that can determine exactly what went wrong and make recommendations to prevent future tragedies,” Capps said in a statement.
Markey added, “Whether it’s a nuclear meltdown at Three Mile Island or an oil blowout one mile deep, appointing an independent review panel is critical to reduce the risks of future accidents.”
Thanks to Richard Charter, as ever!