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BP Report Spreads Blame Around For Gulf Oil Spill

HARRY R. WEBER, MICHAEL KUNZELMAN and DINA CAPPIELLO   09/ 9/10 12:37 AM ET   AP

Bp Report

NEW ORLEANS — BP took some of the blame for the Gulf oil disaster in an internal report issued Wednesday, acknowledging among other things that it misinterpreted a key pressure test of the well. But in a possible preview of its legal strategy, it also pointed the finger at its partners on the doomed rig.

The highly technical, 193-page report attributes the worst offshore oil spill in U.S. history and the rig explosion that set it off to a complex chain of failures both human and mechanical. Some of those problems have been made public over the past 4 1/2 months, such as the failure of the blowout preventer to clamp the well shut.

The report is far from the definitive ruling on the cause of the catastrophe. For one thing, government investigators have not yet begun to fully analyze the blowout preventer, which was raised from the bottom of the sea over Labor Day weekend.

But it provides an early look at the company's probable legal strategy – spreading the blame among itself, rig owner Transocean, and cement contractor Halliburton – as it deals with hundreds of lawsuits, billions of dollars in claims and possible criminal charges in the coming months and years.

Critics of BP called the report self-serving.

"This report is not BP's mea culpa," said Rep. Edward J. Markey, D-Mass., a member of a congressional panel investigating the spill. "Of their own eight key findings, they only explicitly take responsibility for half of one. BP is happy to slice up blame as long as they get the smallest piece."

The report's conclusions stand in contrast to a widely seen BP ad campaign in which the company casts no blame for the explosion and vows to clean up and restore the Gulf Coast.

"BP blaming others for the Gulf oil disaster is like Bernie Madoff blaming his accountant," said Robert Gordon, an attorney for fishermen, hotels and restaurants affected by the spill. Another plaintiff's lawyer, W. Mark Lanier, scoffed: "This is like the ringleader of a lynch mob saying, `Well, I didn't bring the rope; he did.'"

The disaster began when the Deepwater Horizon exploded off the coast of Louisiana on April 20, killing 11 workers. BP's well spewed more than 200 million gallons of oil into the Gulf before a temporary cap stopped it in mid-July.

Members of Congress, industry experts and workers who survived the blast have accused BP's engineers of cutting corners to save time and money on a project that was 43 days and more than $20 million behind schedule at the time of the blast.

Nearly 24 hours before the explosion, Halliburton was using cement to seal the gap between the well casing and the hole drilled in the seafloor. It was also cementing the bottom of the well shut until the day BP was ready to begin extracting oil and gas from it.

In its report, BP said that it was a bad cementing job that contributed to the blowout and that the design of the well was probably not to blame. It also said "more thorough review and testing by Halliburton" and "stronger quality assurance" by BP's well team might have identified weaknesses in the plan for cementing.

The report acknowledged, as investigators have previously suggested, that BP's engineers and employees of Transocean misinterpreted a pressure test of the well's integrity before the explosion.

"The Transocean rig crew and BP well site leaders reached the incorrect view that the test was successful and that well integrity had been established," the investigators said.

They also blamed employees on the rig from both companies for failing to respond to other warning signs that the well was in danger of blowing out.

The words "blame" and "mistake" never appear in the report. "Fault" shows up 20 times, but only once in the same sentence as the company's name.

"The team did not identify any single action or inaction that caused this accident," the investigators said. "Rather, a complex and interlinked series of mechanical failures, human judgments, engineering design, operational implementation and team interfaces came together to allow the initiation and escalation of the accident. Multiple companies, work teams and circumstances were involved over time."

Mark Bly, who as BP's safety chief led the internal investigation, said the report was a reconstruction of what happened on the rig based on the company's data and interviews with mostly BP employees and was not meant to focus on assigning blame. The six-person investigating panel had access to only a few workers from other companies, and samples of the actual cement used in the well were not released to BP.

Transocean blasted the report as a self-serving attempt to conceal what it called the real cause of the explosion – "BP's fatally flawed well design."

Halliburton said it found a number of omissions and inaccuracies in the report and is confident the work it completed on the well met BP's specifications. "Contractors do not specify well design or make decisions regarding testing procedures as that responsibility lies with the well owner," the company said.

White House press secretary Robert Gibbs noted "there is an active investigation into what went wrong" and said the administration's job is to find out what happened and hold those responsible accountable. Federal prosecutors are among those investigating.

In Wednesday trading in New York, BP stock rose $1.18, or 3.2 percent, to close at $38.37.

Investigators know the explosion was triggered by a bubble of methane gas that shot up the drill column and ignited. But they don't know exactly how and why the gas escaped. And they don't know for certain why the blowout preventer didn't work.

But in its report, BP said the blowout preventer didn't do its job because it was damaged in the explosion and because it had a bad valve and weak batteries. Transocean, which was responsible for maintaining the blowout preventer, has insisted the batteries were in working order.

BP also said:

_ Its use of six centralizers during the cementing, instead of the 21 recommended by Halliburton, probably did not contribute to the cement's failure. Centralizers make sure the casing is running down the center of the well bore. If the casing is cemented off-center, there is a risk of an imperfect seal that could allow oil and gas to escape.

_ Just before the blast, the flammable gas leaking from the well was directed onto the rig instead of being vented overboard. The rig's ventilation system may have allowed the gas to enter the engine rooms, where it may have ignited.

_ Recommendations should be considered to improve offshore drilling practices. It suggested, among other things, that standards for reporting and investigating incidents be clarified and strengthened.

Separately on Wednesday, the Obama administration said it sent a sixth bill, for $128.5 million, to BP and others for costs associated with the spill. The first five bills, totaling $389.9 million, have been paid in full by BP, the government said.

The disaster has already cost BP roughly $8 billion, not including a $20 billion victims' compensation fund it has agreed to set up.

___

Cappiello reported from Washington. Associated Press Writers Curt Anderson in Miami, Chris Kahn in New York and Seth Borenstein in Washington contributed to this report.

___

Online:

http://www.bp.com

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NEW ORLEANS — BP took some of the blame for the Gulf oil disaster in an internal report issued Wednesday, acknowledging among other things that it misinterpreted a key pressure test of the well.
NEW ORLEANS — BP took some of the blame for the Gulf oil disaster in an internal report issued Wednesday, acknowledging among other things that it misinterpreted a key pressure test of the well.
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HUFFPOST SUPER USER
angusmciver
Feels Empty
01:52 AM on 09/10/2010
BP STATES among other things "recommendations should be considered to improve offshore drilling practices" Wow, ya think? They said before that this was not possible. Now its important for them to begin pointing fingers, which is logical. Why not? Let the litigation begin.
07:56 PM on 09/09/2010
when will we learn?

unregulated giant multinational companies

are megalomaniacal sociopathic "persons".

they care ONLY about short term profits.

It's actually illegal for them not to.

Big Money companies will ALWAYS cut corners till the systems break.

ONLY regulation by the democratic republics, can prevent this.
05:15 PM on 09/09/2010
When you read the report, you will see that there are EIGHT system failures that led to the disaster. Most disasters are not the result of one failure, but a cascade of unlikely events that coincide in time and space. BP takes responsibility for the initial failure: to ensure that the cement job had sealed the reservoir. The why is between BP and Halliburton. The other failures: mechanical barriers, pressure testing, well monitoring, well control response, surface containment, onboard gas and fire systems are all the responsibility of subcontractors. There are mechanical failures: shoe tracks and valves, bop failure.BP did not manufacture the equipment or install it. Others are human errors: mudloggers not monitoring well flow closely was very strange What I consider a complete tragedy is that the relief outlets for well flow were not directed over the side of the platform but down onto the rig floor, exposing the crew to the flammable oil and gas. redirection of a few pipes could have saved 11 lives. How many other platforms have this same risk? The 8th factor is the spill response and was not fully addressed in the report because final analysis will not be complete for years.
An oil rig is a dangerous place. As this report shows, many many things can and do go wrong: but not usually all at the same time.
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HUFFPOST SUPER USER
Edward Standley
opinionated jerk
01:26 PM on 09/09/2010
BP said that test results were "misinterpreted". Not true. Not long after the explosion, I saw a series of e-mails between a team of subcontracted testing engineers and their home company. They said that they warned BP to shut the well down several times prior to the explosion and were refused. The engineers asked to be flown from the rig and were refused. They chartered their own helicopter to leave, several hours prior to the explosion. e-mails don't just vanish into thin air. They're out there, BP.
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HUFFPOST COMMUNITY MODERATOR
HLL
Women, their rights & nothing less ~ SusanBAnthony
09:47 AM on 09/09/2010
Video:  "Cheney's push of deregulators led to BP disaster"  
http://www.therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=5163

"In the USA, there are 3,500 drilling rigs and platforms, 
79 of them deepwater wells. 
Only 62 inspectors NATIONWIDE  —  So each inspector is responsible for 56 rigs" per year.
http://www.cbsnews.com/stories/2010/06/11/eveningnews/main6573602.shtml

There are 3858 oil and gas platforms in the Gulf of Mexico
ZERO are built to Norway's Safety Standards. That's right — ZERO.
http://seminal.firedoglake.com/diary/49875

Here is a Map of Oil rigs in the Gulf of Mexico from 1942 - 2010:
http://www.frequency.com/video/spread-of-gulf/104260

Time for clean green energy, hello ☮
Cacey
Ignore rudeness, honor discussion
08:24 AM on 09/09/2010
Hey, Republicans, is it okay with you if we also Blame Bush for this or is Bush off limits now like you seem to think he's off limits for everything else?
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HUFFPOST SUPER USER
bleedingheart9
one small step for man...
12:38 AM on 09/09/2010
These are like war trials for wars committed against not only humanity, but the very thing sustaining us, our planet. Just look at the mugs on these guys. Come on. This is a crime scene.
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HUFFPOST SUPER USER
Dr Juan
Ron Paul -More Liberty, Less Government, No Fed
12:16 AM on 09/09/2010
BP keeps blaming the Blowout preventer. But nobody questions why BP chose to have two drill strings in the bore of the POB that it could not cut nor seal, and why they chose to decrease pressure on the well by displacing the heavy mud with sea water at that time and why they did it when they knew the POB was not testing out perfectly and had indications of several malfunctions and they declined to fully test the cement seal in the first place and likely did not give it fully enough time to completely set and even cheaped out on adequate centralizers.... Moronic management of the well by BP.
I have always wondered just why, the LMRU or pod did not disconnect the riser from the BOP like is mandated by most emergency protocols. This capability is necessary to allow the floating platform to decouple and motor out of the path of hurricanes. And it should have activated manually or automatically to save the ship from burning and sinking. Instead, the riser stayed coupled and directed all the fuel straight up under the ship.

And those fighting the fire that ensued should have realized they needed to get the riser disconnected or cut to save DeepWater. Instead BP was focused on getting legal documents signed by crew rescued from the rig!

These are bean counters and lawyers, not oil men!!! Don't let them drill anymore.
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Abbybwood
After over 40 years of support for the Democratic
10:52 PM on 09/08/2010
I heard an interview with someone from The Center for Biological Diversity today on Pacifica and he said the prime reason for the BP Oil Gusher was all the EXEMPTIONS BP received from the federal government:

http://www.biologicaldiversity.org/news/press_releases/2010/gulf-disaster-09-08-2010.html

He said all these environmental and safety impact exemptions from the Interior Department paved the way for the disaster and this is why no one wants to discuss it.

Which is why we MUST talk about it.
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08:30 PM on 09/08/2010
The truth is there were many parties to blame, the government for lax oversight to complicit faking of inspections, every company associated with the rig, and Obama for not recognizing the Interior department had been captured. This is the tip of the iceberg of bureaucratic ineptitude and collusion, and we all mistakenly thought Obama would clean house of corrupt cronyists. From the CIA to the FBI to the EPA to the SEC to the DOD, Republicans bought and sold corrupt practices designed to maximize corporate profits at the expense of We the People and even our lives. I wish Obama had spent his first year cleaning house of all the corrupt GOP corporate cronies, it would have greatly helped keep Democrats enthused about a Democratic government, but Obama had capitulated to Right Wing extremists on almost every front, and now the payback comes around to land in Obama's lap. We all know full well that Obama will take the full blame from the GOP for the horrific corruption and cronyism that ran rampant during Bush.

GOPers never blame themselves for anything, afterall, they still claim we found WMD in Iraq, a few micrograms of residue buried in the sand, but whose counting? Certainly not GOPers. Obama failed to realize that the campaign for government does not stop at victory, the fight must be continued every day as long as Republicans do everything they can to harm the Democrats regardless of whether it hurts We the People. Time to Nut Up!
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06:22 PM on 09/08/2010
Goodness gracious.  Did we ever expect that they'd cop to their uck fups?  An independent investigation with no associations to BP is how investigations should be performed.  Do we allow criminals to investigate themselves or do we have police do it?  Chicken...henhouse....
07:08 PM on 09/08/2010
Well, there has never been any doubt that Transocean and Haliburton played a significant if not deciding role in the blow out.  However, the both have contracts exempting them from liability for their recklessness.  Does anyone see a problem with that?  They can screw up all day long and do not have to bear the consequences.  They are equally rewarded for unsafe practices and they are for safe practices and unsafe practices boost profits. 
10:12 PM on 09/08/2010
that's right...don't have to take any responsibility if you are not one of us "small people"
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HUFFPOST SUPER USER
MyResponsibility
To Disagree,one need not be disagreeable
10:22 PM on 09/08/2010
Where do you get the idea that Haliburton and TransOcean have hold-harmless agreements with BP?  I have not heard that revelation reported anywhere.  If they do have hold-harmless/indemnity clauses, the financial losses will be born only by BP.  I just cannot see any reason why BP would execute contracts that sheltered the subcontractor. It's just not how it works.
06:02 PM on 09/08/2010
Here is one example of where they cut corners.....they say it didn't contribute to the failure, but this shows that they cut corners:
Its use of SIX centralizers during the cementing, instead of the TWENTY-ONE recommended by Halliburton, probably did not contribute to the cement's failure. Centralizers make sure the casing is running down the center of the well bore. If the casing is cemented off-center, there is a risk of an imperfect seal that could allow oil and gas to escape.
07:09 PM on 09/08/2010
Halliburton did the cementing.  Halliburton has been found to be responsible for multiple blow outs due to their cementing.  Fortunately, for them, they have contracts releasing them from any liability for their recklessness.
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Almondo
Agnostic Realist Tradevknaught
07:12 PM on 09/08/2010
BP mandated the use of SIX centralizers during the cementing, instead of the TWENTY-ONE recommended by Halliburton.
04:42 PM on 09/09/2010
i'll start here. it is obvious none of you have bothered to read the entire report and don't understand the terminology.
05:28 PM on 09/09/2010
Oh, that obvious eh? i do understand the terminology...happen to work in the field...
06:00 PM on 09/08/2010
"Contractors do not specify well design or make decisions regarding testing procedures as that responsibility lies with the well owner," ...........oh so true, so true....again BP.
07:10 PM on 09/08/2010
Testing procedures should be done under the eye of regulatory agencies.  It prevents surprizes.
05:56 PM on 09/08/2010
Angry in so many ways:
One: BP's engineers and employees of Transocean misinterpreted a pressure test of the well's integrity before the explosion.
I will tell you what, BPs engineers RUN THE SHOW on the rig. BPs engineers did not "misinterpret" the pressure test...they IGNORED it and told Transocean to do the same. BP runs the show...THEY ARE THE BOSS.
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06:23 PM on 09/08/2010
That's right.  The buck has to stop with someone.
07:17 PM on 09/08/2010
So, we should turn a blind eye to the consistent recklessness of both Haliburton and transocean and wait for the next blow out.  They have contracts with all oil producers and Halliburton has a deplorable track record when it comes to their cementing which has been credited for multiple blow outs.  This irrational need to have one and only one demonic scapegoat leads to enabling the problem to continue.  We have been doing that within the government for decades and look where it got us.  Congress is never held responsibe or accountable for its actions.  Blame is deflected to the executive branch. 

Remember the underwear bomber.  It was systemic governmental failure including Clinton's State Dept that allowed him on to the plane.   Katrina in NOLA was the result of systemic failure of government.  FEMA was no better during Ike in Galveston but competent local and state government prevented the situation that occurred in NO.
04:44 PM on 09/09/2010
bp is not the operator of the drilling rig. bp is not the mudlogger. bp did not direct transocean to vent overflow, ie gas and oil onto the drill flow instead of over the side. read the whole report including the internal bp recommendations.
05:34 PM on 09/09/2010
bp is not the operator...i get that...but they HIRED TRANSOCEAN. BP is the responsible party. period. yes, their contractors failed in quite a few ways, but ultimatley BP OVERSEES it all, and they KNEW something was wrong with the blow out preventor AND they "misread" (as they say) the pressure test. COME ON.
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dave6686
upholder of for the people by the people
05:33 PM on 09/08/2010
Of course they are... Did we expect anything else? And they told their Patsies in the Republican party... I dare you to question BP.. all you little people!