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Rep. Ed Markey

Rep. Ed Markey

Posted: June 25, 2010 02:58 PM

Oil Industry's "Island Vacations" from Regulation

What's Your Reaction:

When BP CEO Tony Hayward left the Gulf oil spill disaster last week to captain his yacht, Bob, in the JP Morgan Chase Asset Management Round the Island race off the coast of England, it was seen as emblematic of the corporate leader's poor handling of the disaster.

Hayward may have sailed on a windward tack that day in the Round the Island race, but it has been his company, and others involved in this disaster, who have used wayward tactics. In fact islands, both real and self-constructed, are central to their ability to dodge regulations.

As was reported in the New York Times this week, BP has dumped a large pile of gravel 3 miles off the shore of Alaska in the Beaufort Sea with the intent of drilling for oil 2 miles deep and as much as 8 miles farther offshore. Yet by creating this "fantasy island" miles out from shore, BP was still able to certify this drilling as happening "onshore."

This island, and the project, is called Liberty. Whether the project is named for a liberation from regulation, or from the constraints of geographical definitions, is a question for BP.

And this isn't the only "island getaway." While no man is an island, the oil companies apparently think that islands are a no man's land for regulation.

Before the Deepwater Horizon rig took a fateful trip to the bottom of the ocean, after an explosion killed 11 men and triggered the greatest environmental disaster in U.S. history, it first cruised past American inspectors.

The rig, which is owned by Transocean, was registered in the Marshall Islands, located about 2,000 miles southwest of Hawaii.

Under Marshall Island law, rig owners are allowed to authorize private organizations to inspect their vessels. Transocean hired the Norwegian contractor Det Norske Veritas (DNV) to conduct inspections of the Deepwater Horizon rig.

At a Minerals Management Service and Coast Guard joint investigative hearing in Louisiana this May, an employee of DNV testified that his company discovered cases of overdue maintenance on equipment on Deepwater Horizon, and that some crewmembers had not been properly trained.

However, these issues didn't reach the level of "nonconformity" and therefore didn't stop the rig's recertification.

These "island vacations" from regulation are the exact reason Congress is investigating BP and the president has called for a temporary pause on new deepwater offshore drilling in the Gulf. The reality is that 97 percent of offshore drilling in the Gulf will continue through this timeout, giving the government time to ensure that the 33 exploration rigs that work in deep water will not endanger the region any further.

This safety pause isn't about ending offshore drilling, it is about ending the oil industry's practice of offshoring the safety of rigs by using various "island getaways" from regulation.

 

Follow Rep. Ed Markey on Twitter: www.twitter.com/markeymemo

 
 
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HUFFPOST SUPER USER
humandecency
05:01 PM on 06/29/2010
Oh come on. What's next? Highly risky oil project gets an exemption from all laws because the CEO had his fingers crossed behind his back? I seriously hope our government is not recognizing these bogus attempts at exemption.
06:26 PM on 06/27/2010
It doesn't seem right that different government agencies seem to have different standards for prosecutions - at least NASA does take action for fraudulent inspections and such:

Ex-NASA Inspector Accused of Fraud
http://articles.latimes.com/2004/oct/06/nation/na-nasa6
05:53 PM on 06/27/2010
if the rigs in the gulf are under a u.s. moratorium, can the rigs then be used by or leased to other countries?

there is after all a limited number of rigs for off shore drilling, and if they end up pumping crude for other countries like brazil, or whomever,

how long until the united states can get those rigs back, and what does that mean for the US Oil supply in terms of its relation to oil independence?
08:19 PM on 06/27/2010
Offshore rigs are mobile. With difficulty and slow sailing, they can be positioned off West Africa, South America, Southeast Asia or any other oil exploration area. Once they are repositioned, they are likely to stay there for some time. This has been widely reported in the press and is correct. The Gulf States with an offshore oil industry are very worried about it. Hence, they are fighting the moratorium.
05:06 PM on 06/27/2010
I'd suggest the author do some further research on this 'Liberty' project before writing this article. BP expanded the island (SDI) 2 years ago for this project -- an island that was originally constructed in 1987 by SOHIO for developing the Endicott offshore oil field; this island is only in 10' of water and is connected to shore by a gravel causeway. By using a land rig for this prospect with a surface BOPE, the drilling is inherently safer than if it were developed 'truly' offshore.
08:27 PM on 06/27/2010
For being the Chairman of the Select Committee on Energy Independence, Markey is especially ill informed. He consistently draws conclusions and spouts off before asking basic questions. This is because his only interest is advancing his own ideological positions.
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HUFFPOST SUPER USER
floodberg
Attorney (ret.)
03:00 PM on 06/27/2010
Mr. Markey, you make a point about the 'vacation' from regulation.

Yet you intentionally omit the hundreds of safety violations on rigs, including (but not limited to) the emergency plans, missed inspections, strong evidence that BP 'independent testers' have fudged or faked rig tests, numerous failures to file current engineering plans on each rig, numberous failures to have effective emergency shut down programs for rigs, and finally avoided the statements of qualified BP employees who are stating the Atlantis rig may be a bigger disaster waiting to happen.

Moreover, both parties in your Congress just 'punished' the oil industry by quietly RENEWING $35 billion in tax breaks and issuing 400 new leases.

Republicans (2007, 22% of registered voters, 10yr trend losing voters) need to pick up votes elsewhere. Disillusioned Democrats (33% and the same ten year trend) may vote Republican if there's no other choice. Independent Progressives (39%) are the only uniformly voting political block in the US and growing steadily. Independents have no affiliated corporately-controlled party, but are now the political kingmakers. This post won't get our protest votes - as far as we're concerned, the party's truly over.

DOES ANYONE SMELL THE OFFENSIVE ODOR OF DISINNGENUOUSNESS AND VOTER MANIPULATION FROM MARKEY AND THIS ARTICLE? It's making my eyes water.
12:50 PM on 06/27/2010
Whether you know it or not, parochial Massachusetts resident Markey, the DNV is one of the foremost ship certification agencies in the world, the one that is certfiying, in all likelihood, most of the cruise ships and other vessels in use around the world. The fact that the name is apparently new to you is nothing but a reflection of your own ignorance with respect to global shipping.
hellinahandcart
Your silence will not protect you.
07:47 PM on 06/27/2010
To add to that, Markey conveniently left out the quite dramatic fact that DNV left the rig platform just a couple of hours before the blowout, after a heated exchange w/ BP and Transocean Supers.
BP would not provide them a helicopter, so DNV had to call their own, as they were in a hurry to get off the rig. They obviously knew it was probably going to blow.
You're not talking about it, Markey, and the American people aren't hearing it in the MSM.
WHY?
08:14 PM on 06/27/2010
Where did you hear that?! I follow this closely and have heard nothing about this. I did hear that Schlumberger, an oilfield service company, had their personnel flown to shore, but this was because the work they were supposed to do was completed.
maxfax
Taa - dah!
12:38 PM on 06/27/2010
And what of Federal regulators, and regulations? Didn't Cheney's infamous "energy task force" set the agenda for the industry to run the government show? How many insiders remain in key positions? And is this the reason the response to the British Petroleum remains in control and the report of the number of responders is a total fabrication? Senator, while BP lies, the habitat dies.
10:46 AM on 06/27/2010
As the people's friend my advice is that all non essential personnel of businesses ( IE parent care givers and children ) should make arrangements to leave the Gulf region as soon as possible and move North to states that will accept them.

The risk is simply too high for most people to stay. If a hurricane comes into the area of New Orleans this year, then there will be a panic style scramble to leave. I am asking that residents make arrangements to leave now, to avoid being trapped in a hurricane zone with millions of gallons of oil ready to wash up on shore.

Beaches made of tar is the result of the BP " clean-up " efforts. They will squirm out of any agreement to really clean up. Their burning of skimmed oil has resulted in a gulf heat bubble approximately above or around the oil spill. This is a sure target for a hurricane. The critical time to evacuate safely is now. ( Blaqfather - 6 / 27 / 2010 )

All references have been DE-Linked for accuracy. Just drag and drop them into a search window or type them in manually. All of these references begin with ( http://www. )

Reference :

maineharbors.com/weather/seatemp4.htm

delmarvanow.com/article/20100615/OPI02/6150365

prweb.com/releases/Infinite_Monster/Hurricane_Recovery/prweb4140374.htm

atmoreadvance.com/2010/06/14/experts-predict-active-hurricane-season/
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HUFFPOST SUPER USER
Left on Red
Micro Bio 201 T-Th 1 - 2:30 Lab W 1-5 Dr. Price
08:20 PM on 06/26/2010
If I am going to create my own island, i sure as heck isn't going to be for drilling oil in the arctic. A nice tropical location with pina coladas would be ok.

On a serious note, isn't the Army Corps of Engineers the permitting agency for any activity in navigable waterways. How are permits issued for a gravel artificial island. Doesn't anybody question why an oil company would be doing this? Something seems fishy off the Alaskan coast. Where is Sista Sarah protecting her turf? ha ha.
outnow
Ban the bomb
06:31 PM on 06/26/2010
Globalization is just a scam to offshore banking free from regulations and taxation, and to pull off environmental exploitation by big multinational corporations. Free trade is a scam, too, sending jobs overseas. In fact, the two-party system is a big scam, too.

All of this breaks the social contract within nations. No wonder nobody cares. First, there's nothing they can do after Raygun and Thatcher - there is no other way. Second, everyone is being paid off or regulation is "captured."

The multinational corporations are loyal to nobody. Profits are privatized and costs socialized. A little bit is left over for bribes (lobbyists and campaign contributions).

It is always an excuse that the City of London does it. I am so sick of that BS.
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HUFFPOST SUPER USER
captspock
08:56 AM on 06/27/2010
And the masses still fiddle,while the,Reagan "mantra" of,"lets get the government out of our lives"[corporations],burns deep,and is still thought of, as a solution.If people have not seen the light from this burning fire by now,they will,be consumed be it.
I fear it has burnt its way through our values,our very souls,and as I wrote in an earlier post we as a nation have become,"POTTERSVILLE',the town in the movie,It's a Wonderful Life .
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05:48 PM on 06/26/2010
Please, please stay out of the Arctic seas.
04:43 PM on 06/26/2010
Lets require that any drilling rig operating in US waters fly the US flag.
HUFFPOST SUPER USER
Longtimeliberal
03:03 PM on 06/26/2010
The oil plan for BP sounds outrageous and has to be stopped. It does not have final approval and if by some nightmare it does Alaska needs to take all financial liability for any problem and not come begging and blaming.
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HUFFPOST SUPER USER
plaidsportcoat
11:46 AM on 06/26/2010
...and end all aid to the Marsall Islands and blockade them, too
03:34 PM on 06/25/2010
With all due respect to Congressman Markey, he is blurring the facts on a few issues relating to the DEEPWATER HORIZON. The rig was registered by Transocean with the Marshall Islands Registry because Mobile Offshore Drillign Units (MODUs) travel internationally and an internationally respected flag state is appropriate to that endevour. It should be noted that the Republic of the Marshall Islands holds the highest international reputation regarding safety and is among few registries to be listed on the US Coast Guard's Qualship 21 list, which is the strictest port state control qualification in the world today. The Republic of the Marshall islands is also on the white list of both the Paris and Tokyo MoUs, which represent port states in Europe and Asia, respectively. In fact, the latest Paris MoU lists were released this week and the Marshall Islands continued to be white listed while the US flag was on the grey list.
As to the Recognized Organizations that the Marshall Islands allows to condust inspections of MODUs, it should be noted that the American Bureau of Shipping (ABS) and Det Norske Veritas are renowned for their expertise in the offshore industry. It should be noted that the US Coast Guard also allows ABS to conduct inspections on its behalf under its Alternative Inspection Program.
07:42 AM on 06/26/2010
Congressman Markey, as do most congressmen who like to get media face-time, does not like facts that stand in the way of a good sound bite.
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PharmaCan
Trying to make sense of it all
10:22 AM on 06/26/2010
Thanks for the fact sheet, Walter. Just for that, I'll become your first fan.
12:55 PM on 06/27/2010
Same here Walter. A breath of fresh air!