 Transocean says BP withholding information Washington (UPI) Aug 20, 2010 - Transocean has accused BP of withholding information necessary for its internal investigation into the Deepwater Horizon rig that exploded and sank in April. Transocean owned the drilling rig, operating it under lease to BP. A letter to BP, signed by Transocean's acting co-general counsel Steven L. Roberts Thursday, said Transocean's internal investigation of what went wrong has been hampered by BP's refusal to deliver "even the most basic information" about the event, The Washington Post reports. Transocean's letter said it "appears that BP is withholding evidence in an attempt to prevent any entity other than BP from investigating the cause of the April 20th incident and the resulting spill." Transocean said it had asked BP for the information at least seven times. The Houston Chronicle reports that among the 16 items Transocean is requesting from BP in the letter are records of tests on the rig's blowout preventer using a new digital testing method, lab reports and tests on items such as the cement mix used in the well, information on a mix of chemicals called spacer used in well operations and data on equipment used to keep the well pipes centered in the well during cementing. James Neath, BP's associate general counsel, responded to Transocean's letter, calling it "nothing more than a publicity stunt evidently designed to draw attention away from Transocean's potential role in the Deepwater Horizon tragedy," the Post reports. In his letter, Neath said BP had turned over more than 100,000 documents to Transocean. He also demanded that Transocean make the results of its own internal investigation public. The Chronicle reports that while BP has provided documents to congressional committees and regulators, those bodies are not sharing that information with Transocean. On May 15, Transocean asked BP to agree to allow federal officials to share that data. Saying that the company is "disappointed" with Transocean's letter, a BP spokesman called the allegations "misguided," CNN reports. "We have been at the forefront of cooperating with various investigations," BP spokesman John Curry said in a statement. "Our commitment to cooperate with these investigations has been and remains unequivocal and steadfast." The stakes are high in the investigation. While BP is responsible for all the costs to clean up the oil and has committed $20 billion to offset economic damages to the region, lawsuits could continue for years and involve all the companies involved in the project. Of the 11 people killed in the disaster, 9 were Transocean employees. |
Citing internal documents from lawyers handling the fund, the daily said businesses and individuals who accepted compensation from the fund would waive their rights to sue not only the British energy giant, but any company implicated in the largest accidental spill in history.
The waiver would come into effect only if a final settlement is accepted.
The fund, set up by BP at the White House's urging, is being administered by Kenneth Feinberg, who oversaw a similar fund to compensate victims of the September 11, 2001 attacks.
Recipients of money from that fund faced a similar choice: sue, risking a lengthy battle and uncertain outcomes, or waive their right to litigation and accept settlements before the full impact of the disaster is known.
In the case of the spill fund, even though BP is the only firm paying into the compensation account, it is expected to seek a litigation exemption for at least three other firms linked to the disaster, the Times said.
They include Transocean, which leased its Deepwater Horizon rig above the ruptured well to BP; Halliburton, which cemented the well; and Cameron International, which supplied the blowout preventer, the device atop the wellhead that failed to shut the well down after the April 20 explosion that ripped through the rig, sparking the spill.
The Times also reported that compensation eligibility is expected to be based partly on geographic proximity to the spill, potentially cutting out individuals and businesses who suffered serious knock-on financial hardships.
Other potentially controversial provisions prohibit payments based exclusively on declining home values linked to the spill, and compensation based on mental health claims.
Feinberg is expected to release regulations for emergency payments Friday and the final settlement protocols in the fall, with the two terms expected to be similar except for a higher burden of proof in the case of final payments, the newspaper said.
earlier related report
BP starts removing drill pipe from damaged wellhead
Washington (AFP) Aug 21, 2010 -
BP said Saturday it began removing drill pipe and other equipment from a damaged wellhead under the Gulf of Mexico, as it prepares to replace its giant blowout preventer valve with a new one.
Called a "fishing" procedure, the pipe removal was authorized late Friday by US spill response chief Thad Allen after a successful 48-hour "ambient pressure test" to ensure no oil will leak during the procedure, BP said.
Allen also gave BP until Sunday to submit a proposal for removing the blow out preventer that will not interfere with a federal investigation into the April 20 explosion that unleashed the worst oil spill in US history.
A so-called "bottom kill" operation to permanently seal the ruptured well has been delayed until the blow out preventer is replaced.
The bottom kill involves intercepting the crippled well with a relief well, which then pumps heavy drilling oil and cement into the oil well to permanently plug it.
Originally scheduled for mid-August, the bottom kill was postponed earlier this week to at least the second week of September because of concerns about pressure at the drill site.
The ruptured Macondo well was capped on July 15 and earlier this month BP engineers performed a "static kill" which plugged it with heavy drilling fluid and then sealed it with cement.
However, there is an area between the well and the outer well bore called the annulus which must still be sealed off from the reservoir miles below the surface of the Gulf of Mexico.
Engineers are worried that on removing the blow out preventer, the pressure behind the annulus could increase too quickly and compromise the cement plug above it.
In reference to the delicate blow out preventer removal, Allen told BP "the procedure may not be commenced without my prior approval."
He also ordered BP to provide "continuous live," remote video coverage of the operation, as well as "unfettered access" to federal investigators to observe and record the entire process.
Allen said the Joint Investigation Team he heads "will take custody of all equipment removed from or associated with the BOP (blow out preventer) stack... from the time it is removed from the well head and will maintain that custody throughout the lifting process."
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