Well, It’s About Time! Justice Department Sues BP
Posted: December 15, 2010 Filed under: Gulf Oil Spill, New Orleans | Tags: BP oil spill, Eric Holder, Justice Department 27 CommentsFinally! The Justice Department (PDF) is suing BP and eight other companies over the Gulf oil spill. From the Financial Times
BP faces penalties of $21bn-plus if found fully liable for damages in a lawsuit over the oil accident in the Gulf of Mexico launched by the US government on Wednesday.
Any damages would be on top of the $20bn (£17bn) BP has agreed to pay into a fund to compensate people on the Gulf coast who have suffered financially because of the spill. The final damages figures depend on the US government’s ability to prove gross negligence.
[….]
The US Department of Justice announced that it was suing BP, along with Anadarko of the US and Mitsui of Japan, its partners in the disastrous Macondo well; Transocean, the owner of the Deepwater Horizon drilling rig; and the QBE syndicate 1036 at Lloyd’s of London, which insured the rig.
Eric Holder, the US attorney-general, said: “We intend to prove that these defendants are responsible for government removal costs, economic losses and environmental damages without limitation.”
The lawsuit alleges that safety and operating regulations were violated in the period leading up to April 20.
It says that the defendants failed to keep the Macondo well under control during that period and failed to use the best available and safest drilling technology to monitor the well’s conditions. They also failed to maintain continuous surveillance and failed to maintain equipment and material that were available and necessary to ensure the safety and protection of personnel, equipment, natural resources and the environment, the suit charges.
Before Wednesday, potential class-action lawsuits had been filed in the Gulf oil spill by fishing and seafood interests, the tourism industry, restaurants and clubs, property owners losing vacation renters — even vacationers who claim the spill forced them to cancel and lose a deposit. So far, more than 300 suits have been spawned by the spill and consolidated in federal court in New Orleans.
Specifically, according to the Christian Science Monitor,
The complaint seeks to enforce provisions of the Oil Pollution Act, which government lawyers say provides for open-ended liability for pollution removal costs and other damages.
The lawsuit alleges that the companies failed to take necessary precautions to keep the oil well under control in the period leading up to the explosion. The companies also failed to rely on the best available and safest drilling technology, the suit says.
In addition, the companies are accused of failing to maintain continuous surveillance of the drilling operation and failing to ensure the safety and protection of workers, equipment, natural resources, and the environment.
The suit also seeks civil fines under the Clean Water Act for the oil that poured into the Gulf after the explosion.
The civil suits will be going on at the same time as the Justice Department’s criminal investigation.
The Justice Department is “at a different stage” with its criminal investigation compared with the civil case, Holder said. “We are moving as quickly as we can” on the criminal investigation, said Holder, who didn’t give any timetable for when it might conclude.
The Blog of the Legal Times notes the difficulty posed by running parallel criminal and civil legal actions:
The suit filed today in the U.S. District Court for the Eastern District of Louisiana comes amid an ongoing criminal investigation of the oil spill, which followed an explosion and fire in April that killed 11 workers.
The suit thrusts the government into the sometimes challenging world of parallel criminal and civil proceedings. The Justice Department also said in the complaint it reserves the right to conduct administrative proceedings against the defendants.
“It is difficult to have parallel proceedings going on at the same time,” said Attorney General Eric Holder Jr., addressing reporters this afternoon at Main Justice. “We need to be careful to make sure that we don’t do anything that violates any of the rules that we have to follow on the criminal side while at the same time proceeding on the civil side. It’s been a little tricky.”
Today was the final day to sue for damages caused by the BP oil spill.
The lawsuit makes it possible for the federal government to seek billions of dollars in penalties for polluting the Gulf of Mexico, beaches and wetlands, and reimbursement for its cleanup costs. More than 300 lawsuits filed previously by individuals and businesses, and now consolidated in the New Orleans federal court, include claims for financial losses and compensation for the families of 11 workers killed in the blast.
The judge overseeing those lawsuits had set Wednesday as the deadline to file certain types of complaints, though it was unclear whether the government was bound by that time frame.
“The Justice Department has left its options open to argue that there was gross negligence and therefore should be higher penalties,” said David Uhlmann, a law professor at the University of Michigan who headed up the Justice Department’s environmental crimes section for seven years. “The government has not limited itself in any way with the filing of its civil lawsuit.”
My main question is where will the money go if the suits are successful? Will the people in the Gulf states receive any compensation from damages paid to the government? I certainly hope so.
Tuesday Reads
Posted: November 9, 2010 Filed under: morning reads, New Orleans 42 CommentsGood Morning!
I spent the evening at Spotted Cat chatting up my Saints and jass lovin’ Uncle Lionel Baptiste and Doctor Daughter and her Doctor significant other who has never known what it means to miss New Orleans until now. The cool fall weather is delightful and I’m remembering why I just absolutely love my hood. Uncle Lionel was talkin’ bout sendin’ off Bunchy still and I was asking about sending off the late great Walter Payton. You can see both Uncle Lionel and Walter on that last link. I wanted to take Doctor Daughter to see my friend Mikki do her retro Japanese jazz thing on Frenchman at Yuki’s last night but missed it ’cause I spent way too much time with Uncle Lionel. I’m thinking it’s about time I get a regular gig since Jindal’s destroyed higher education in Louisiana. I can always gig and I can always teach piano. I also own a little tiny bit of the upper ninth ward and I want to keep it as long as I can.
My favorite Uncle Lionel story is when he was sitting next to me on the piano bench at Vaughn’s right after Katrina and I was playing away. Some tourist came up and said to him that no one plays like that ‘cept down here with that twinkle in the eye that meant I did not come with that extra appendage and such. That’s always a reference to some or other attributes that I do not possess if you get my drift. My uncle Lionel looked up to him, straight up, and told him that his ears might work but his eyeballs were a bit distracted by trifflin’ things. ‘Nuf said.
Let’s get to the news out side my beloved ninth ward after I treat you with something from the HBO series Treme. Oh, and I promise that this week on a Treat link I will give up some secrets for cajun/creole delights.
As the man says, “that moment can’t happen in New York”.
Speaking of interesting developments, the congressional black caucus still hasn’t figured out what to do with a tea party candidate that qualifies for the club. This should be one of those Kodak Moments.
The Congressional Black Caucus (CBC) is staying silent about a Tea Party Republican’s bid to join the group.
Rep.-elect Allen West (R-Fla.) indicated last week he intends to join the CBC to challenge the group’s “monolithic voice.”
“I plan on joining, I’m not gonna ask for permission or whatever, I’m gonna find out when they meet and I will be a member of the Congressional Black Caucus,” West, one of two black Republicans elected to Congress last Tuesday, told WOR radio. “I meet all of the criteria, and it’s so important that we break down this monolithic voice that continues to talk about victimization and dependency in the black community.
“We’ve got to turn this thing around, and I think it’s time for some different voices to be in that body politic.”
Here’s Bloomberg’s take on the Potus trip to Indonesia.
“We see in Indonesia the intersection of a lot of key American interests,” Ben Rhodes, Obama’s deputy national security adviser, said. The partnership “is very important to the future of American interests in Asia and the world.”
As China’s economic and diplomatic clout grows, Obama has made a priority of engaging other Asian nations, particularly the 10 countries that make up the Association of Southeast Asian Nations. With a population of about 600 million, Southeast Asia was America’s fifth-largest trading partner and the fourth- biggest market for U.S. goods last year.
The Times of India has an interesting bit about Obama’s visit there. You can find it here.
Speaking at a town hall meeting in Mumbai, he said, “I do think that one of the challenges that we are going face in the US, at a time when we are still recovering from the financial crisis is, how do we respond to some of the challenges of globalisation? The fact of the matter is that for most of my lifetime and I’ll turn 50 next year – the US was such an enormously dominant economic power, we were such a large market, our industry, our technology, our manufacturing was so significant that we always met the rest of the world economically on our terms. And now because of the incredible rise of India and China and Brazil and other countries, the US remains the largest economy and the largest market, but there is real competition.”“This will keep America on its toes. America is going to have to compete. There is going to be a tug-of-war within the US between those who see globalisation as a threat and those who accept we live in a open integrated world, which has challenges and opportunities.”
The US leader disagreed with those who saw globalisation as unmitigated evil. But while acknowledging that the Chindia factor had made the world flatter, he said protectionist impulses in US will get stronger if people don’t see trade bringing in gains for them.
“If the American people feel that trade is just a one-way street where everybody is selling to the enormous US market but we can never sell what we make anywhere else, then the people of the US will start thinking that this is a bad deal for us and it could end up leading to a more protectionist instinct in both parties, not just among Democrats but also Republicans. So, that we have to guard against,” he said.
Labor demand has been growing in the United States, reflected in a modest increase in private payroll employment this year and a more substantial increase in private-sector job vacancies over the past 12 months. Despite these signs of improvement, the unemployment rate has declined only slightly. Some analysts have raised the specter of a fundamental mismatch between the supply of labor in terms of workers’ skills and demand for labor in terms of employers’ skill requirements. Such a mismatch between available workers and available jobs could increase the level of structural unemployment. To the extent that structural unemployment is actually rising, the phenomenon poses a dilemma for policymakers. It cannot be ameliorated through conventional monetary and fiscal policy. And it implies an increase in the lowest unemployment rate associated with stable inflation, often identified by the acronym NAIRU, which stands for the non-accelerating inflation rate of unemployment.
It’s true that things aren’t as bad as they were during the worst of the Depression. But that’s not saying much. And as in the 1930s, every proposal to do something to improve the situation is met with a firestorm of opposition and criticism. As a result, by the time the actual policy emerges, it’s watered down to such an extent that it’s almost guaranteed to fail.
We’ve already seen this happen with fiscal policy: fearing opposition in Congress, the Obama administration offered an inadequate plan, only to see the plan weakened further in the Senate. In the end, the small rise in federal spending was effectively offset by cuts at the state and local level, so that there was no real stimulus to the economy.
Now the same thing is happening to monetary policy.
The case for a more expansionary policy by the Fed is overwhelming. Unemployment is disastrously high, while U.S. inflation data over the past few years almost perfectly match the early stages of Japan’s relentless slide into corrosive deflation.
Unfortunately, conventional monetary policy is no longer available: the short-term interest rates the Fed normally targets are already close to zero. So the Fed is shifting from its usual policy of buying only short-term debt, and is now buying long-term debt — a policy generally referred to as “quantitative easing.” (Why? Don’t ask.)
There’s nothing outlandish about this action. As Mr. Bernanke tried to explain Saturday, “This is just monetary policy,” adding, “It will work or not work in much the same way that ordinary, more conventional, familiar monetary policy works.”
Yet the Pain Caucus — my term for those who have opposed every effort to break out of our economic trap — is going wild.
What’s on your blogging and reading list today?
Gulf Gusher Update: Oil Does NOT Vanish
Posted: November 6, 2010 Filed under: Gulf Oil Spill, New Orleans | Tags: Gulf Of Mexico, Oil still coming ashore, seafood and wildlife response to oil spill 43 Comments
They may have killed the well, but don’t believe any one when they say that the worst is over. The problem is that you’re probably not hearing anything or seeing anything about the aftermath because there seems to be no media around the Gulf Coast other than the locals. Here’s the latest one that I was tweeted today that sent me off to a blogging state of mind. This is from Project Gulf Impact and you really need to watch their video.
This is of special interest to me because I swear the last batch of shrimp I got at the ghetto Winn Dixie had something greasy in the intestine. It was so bad, I threw them away. When I rubbed the black gunk between my fingers, it smeared and stayed there. It took quite a bit of Dawn to get it to go away. It also tasted gritty and greasy.
Despite repeated statements from the EPA and NOAA assuring residents that thorough Gulf of Mexico seafood testing has revealed levels safe for human consumption, public skepticism has continued to deter many locals from their usual seafood medley. Independent scientists have expressed concern over the published methods and protocols used by federal agencies to open sensitive fishing grounds & determine seafood safety. Invertebrates, such as shrimp, crab, & oysters, are of particular concern due to their feeding habits, relatively stationary lifestyle, and inability to process highly toxic compounds found in crude oil called Polycyclic Aromatic Hydrocarbons (PAH). Unfortunately, their concerns have proven valid.
One local activist, “Mac” Mackenzie of NOLA Emergency Response, decided that it was time to take matters into her own hands. After an incessant 7-week investigation, Mac was able to obtain crucial information from our government regarding the specifics of Gulf shrimp testing. Particularly in the Gulf of Mexico, it is common for shrimp to be prepared and even served whole, with the shell and digestive tract intact. When Mac learned that the Gulf shrimp testing performed to date had not included an analysis of whole shrimp with intact shells or digestive tract, she decided to mobilize. She obtained two pounds of locally caught shrimp from Venice, a small town located in the heart of Southern Louisiana. The samples were promptly transported on ice to a laboratory in Mobile Alabama, where Chemist Dr. Robert Namen tested the digestive tracts of the shrimp for components of crude oil. What they found was an alarming 193 parts per million of “Oil & Grease.”
This story came on top of another one this week concerning dead and dying Coral close to the killer wellhead. This is from The Times Picayune.

Image courtesy of Lophelia II 2010 Expedition, NOAA-OER/BOEMRE A single colony of coral with dying and dead sections on left, apparently living tissue at right, and bare skeleton with sickly looking brittle star on the base.
A brown substance is killing coral organisms in colonies located 4,600 feet deep about seven miles southwest of the failed BP Macondo oil well, according to scientists who returned Thursday from a three-week cruise studying coral reefs in the northern Gulf of Mexico.
The finding is the first case in which researchers have found evidence that living organisms in the deepwater area near the well site might have been killed by oil from the spill.
Penn State University biology professor Charles Fisher, chief scientist aboard the NOAA ship Ronald H. Brown said soft coral in a 15-meter to 40-meter area was covered by what appeared to be a brown substance.
“Ninety percent of 40 large corals were heavily affected and showed dead and dying parts and discoloration,” according to a news release reporting the findings by Fisher and other scientists issued jointly by NOAA and the Bureau of Ocean Energy Managment, Regulation and Enforcement, which co-sponsored the research. “Another site 400 meters away had a colony of stony coral similarly affected and partially covered with a similar brown substance.”
“While this mission was not designed to be focused on oil spill research, the timing and location provided an opportunity to observe any impacts to our research areas,” Fisher said in the news release. Fisher was unavailable for further comment on Thursday night.
The release said the scientists “observed dead and dying corals with sloughing tissue and discoloration.”
That’s just some of the continued impact on the ecosystem down here. The town of Gulf Shores, Alabama reports they are still owed $2 million in lost revenues. A city meeting also discussed outstanding claims by businesses and individuals. This, despite the uptick in local advertising I’ve seen on ad ‘stories’ of how BP has made me whole again run by BP here on our local TV stations. The ad revenues for this things must be unbelievably large.
A BP spokesman did not respond to inquiries about the lost revenue claims.
Also at Monday’s meeting, Dyken reported that officials were still trying to work out problems with the lack of claims paid by Ken Feinberg’s Gulf Coast Claims Facility to individuals and businesses.
Officials in south Baldwin County were expected to meet with Feinberg this week, Dyken said.
Baldwin County had received about $219 million, Dyken said.
“Some people still haven’t been paid on claims that are legitimate,” he said. “They have distributed a large amount of money. It’s just whether that money has gone to the appropriate parties in the appropriate places. There’s not a lot of rhyme or reason to some payments being made and others not. There’s also not the degree of transparency we would like in the process.”
In order to ensure that the oil spill’s lingering affects do not carry into next year, Doughty suggested expanding the tourist season.
“We need rebranding of the Gulf so that people understand the Gulf is safe, whether it’s Gulf seafood, Gulf beach, air whatever,” she said. “With tourism being our No. 1 economic engine here, anything we can do to help tourism would be great.”
This is particularly weird given the report by a Pensacola/Mobile TV station that a tourist was slimed with aging Oil last week. You can see the pictures and the news report here at the Channel 5 website.
Jonathan Jones’ palm still has an oil mark. He says he emerged from the water after a brief swim in Gulf Shores with trace amounts of crude.
“We looked at it and kind of smeared it a bit and figured out it was oil,” says Jones. He says he had to bathe with dish soap to get it off. At first he was worried about dispersants but then he quickly calmed down.
“There are hundreds of people on this beach and no one else had this happen,” says Jones. It’s probably important to put what happened to Jonathan in perspective. This appears to be an isolated incident and the beaches are most certainly still open
Meanwhile, future troubles lurk too. MoJo has identified the BP Atlantis–something BostonBoomer has written about–as another ‘Ticking Time Bomb in the Gulf’.
Located 124 miles off the Louisiana coast, the Atlantis platform produces 200,000 barrels of oil daily, more than triple the amount of oil that spilled from the Horizon site each day. But long before the Deepwater Horizon disaster, a whistleblowing former BP contractor tipped off regulators that the Atlantis may be violating the law, and environmental groups and members of Congress have been publicly questioning the platform’s safety ever since.
According to Kenneth Abbott, a former BP contractor who worked on the platform from 2008 through early 2009, more than 7,000 documents necessary to operate the platform safely are missing or incomplete. Abbott says the vast majority of the project’s subsea piping and instrument diagrams were not approved by engineers, and the safety systems are out of date. In practice, the lack of documentation on this platform would make it extremely difficult to respond in the event of an accident like the Deepwater Horizon blowout, critics say, because no one really has an accurate picture of the Atlantis’ design.
This seems to be the forgotten disaster and environmental disasters do not just disappear. Down here, the big election
story was between Vitter and Melancon and both were fighting over who could be the most welcoming to the drillers and spillers. The MSM appeared more fixated on political personalities than issues. The only program still properly fixated on the BP Gusher is South Park that has a completely hilarious bit where Tony continually apologizes and then keeps on with making worse decisions. You can click on the picture to watch the episodes at Comedy Central or just the apology ad campaign send up.
If you live down here were there are daily reports of “massive stretches of weathered oil spotted in the Gulf of Mexico”. This report on a sighting is dated from October 23, 2010. That means it’s post well plugging. Again, this is from the Times Picayune here in New Orleans.
Just three days after the U.S. Coast Guard admiral in charge of the BP oil spill cleanup declared little recoverable surface oil remained in the Gulf of Mexico, Louisiana fishers Friday found miles-long strings of weathered oil floating toward fragile marshes on the Mississippi River delta.
The discovery, which comes as millions of birds begin moving toward the region in the fall migration, gave ammunition to groups that have insisted the government has overstated clean-up progress, and could force reclosure of key fishing areas only recently reopened.
The oil was sighted in West Bay, which covers approximately 35 square miles of open water between Southwest Pass, the main shipping channel of the river, and Tiger Pass near Venice. Boat captains working the BP clean-up effort said they have been reporting large areas of surface oil off the delta for more than a week but have seen little response from BP or the Coast Guard, which is in charge of the clean-up. The captains said most of their sightings have occurred during stretches of calm weather, similar to what the area has experienced most of this week.
The Coast Guard is saying parts of it are just algae but frankly, I believe the captains of Louisiana’s Cajun/Creole fishing fleet. Again, this thing and its impact are not over by a long shot. It’s absolutely necessary to continue to hold our elected officials and BP accountable for all the damage done and still happening to the ecosystem, wildlife, and people of the Gulf.
What’s a voter to do?
Posted: November 1, 2010 Filed under: Elections, New Orleans | Tags: Caroline Fayard, Cedric Richmond, Charlie Melancon, David Vitter, midterm elections 2010 52 Comments
This year seems to be just one bad choice after another for mid term voting. I have a blue dawg Democrat–Charlie Melancon–running for Senate that appalled me last week by saying this was a “Christian nation” and that he hoped it remained so in the televised debate with David Vitter. David Vitter came off as more reasonable with his answer and I thought that was an impossibility. I closed my check book on that one and am looking at the Green Party Candidate now. What a Hobson’s choice!
I can’t vote for the Democratic Congressman for reasons I wrote about earlier. So, that’s almost a Sophie’s choice. I wanted to like you Cedric, but you’ve just had too many ethics lapses that they’ve caught you on! That makes me wonder what lurks uncaught.
Bostonboomer linked this morning to a post over at Corrente by Valhalla on how the Democratic Party is no longer the beneficiary of a gender gap. No wonder. With this odd assortment of blue dawgs, Jane-Crow-adherents-of-Stupakistan, and fall-in-line to pass anything cowards, where’s a vote to go these days?
I cannot divorce my vote from the issues or the fact I live in New Orleans which is still reeling from Hurricane Katrina and now the BP oil spill and a horrid governor. I do not believe that putting in whacko tea party candidates is going to do one’s state or municipality any good during a tough recovery. I also think if a critical mass go with Speaker of the House Agent Orange–Snookie of the Radical Right Prudes–we’re going to lose ground in a big way. This election season is the original rock and a hard place. I only hope and pray for a few years of gridlock at this rate!
Anway, I just wanted to let you know that we’ll have live links and live blogging tomorrow so you can bring you voices, votes, and on-the-ground poll stories to every one here. Again, we’re a sharing place so I expect they’ll be an assortment of choices and varying levels of anger and disappointment.
Maybe one of us will have a few bright spots in an otherwise bleak elections season. I have one candidate that I’m strongly voting for and that’s Caroline Fayard who is running for Lt. Governor. I’d like a liberal woman in there to offset the horrible Bobby Jindal whose policy has been like the thing from Honey Island Swamp. She’s worth rooting for.
Every thing else appears to be choice-gone-bad.
Four Years Ago …
Posted: August 29, 2009 Filed under: New Orleans | Tags: hurricane katrina Comments Off on Four Years Ago …
Looking at the North side of my house on the day after Hurricane Katrina. (Taken by a neighbor who stayed.) You can see there is no flooding and my roof is on. I still had to stay in Omaha for FIVE weeks before they'd let me come back home.
Four years ago, I was sitting on a pink futon on the floor of a motel in Lake Charles, LA with two blond labs and a cat named after Miles Davis wondering if I still had a place called home. In the bed on the right was a finance Phd student from Macao and on the bed on the left, her roommate, a sociology Phd student from Japan. I actually got my place on the floor because I called all the foreign Phd students at UNO (New Orleans) in the Econ/Finance Department and said, get hotel rooms and get out of here, as soon as you can! We had the United Nations there. My friends from Syria, Turkey, and then, of course, the other two I mentioned took me right in! My lama from Nepal showed up there eventually too.
I had planned to stay in New Orleans. It wasn’t until I remembered the aftermath of other hurricanes that went else where (like Georges) and the mess that went on inside and around the Superdome that I thought, I bet I could survive the Hurricane, but NEVER the aftermath. I knew the aftermath would be a Hell Realm. After boarding up the house, I left with my pets, a pink futon, a poorly packed overnight bag, and little else since I was waiting for a paycheck due on that Monday that wouldn’t arrive until three months later. I went to bed that night, thinking I could drive back home. I woke up the next morning wondering where I was going to seek refuge.







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