SUNDAY, JUNE 13, 2010


KLMNO


As spill’s fallout delays permits, shallow-water rig crews wait


rig from A1


“Putting semantics aside, there are no new permits being issued in shallow waters,” said James W. Noe, general counsel of Hercules Offshore, the biggest shallow-wa- ter rig operator in the gulf. Noe and other executives met with lawmakers from Gulf Coast states on Thursday and Friday, includ- ing some of the 10 senators who had earlier urged Obama to ex- empt shallow-water rigs from his moratorium. “The pace of new contracting and permitting is slowing down . . . as operators and contractors get up to speed on the new re- quirements,” said a report by Jef- feries & Company, an investment firm. It said that that four of Sea- hawk’s jack-up rigs — whose legs stand on the seafloor — have per- mits pending. “We’ve submitted the paper- work we think they’re asking for, but nothing’s really clear,” Rick Storey, Seahawk’s director of sales and marketing, said of the Miner- als Management Service, which oversees the industry. “The reg- ulations are so vague.” The Houston-based Seahawk, with roughly 1,000 employees, has nine rigs in the gulf. Two of them are idle because of permit- ting delays, costing the company about $60,000 a day. “We’ll start laying off pretty


quick . . . because you just can’t af- ford to keep paying crews if you can’t work the rig,” Storey said. Despite calls in Congress and


from Interior Secretary Ken Sala- zar last week for BP to pay lost wages to workers affected by Oba- ma’s deep-water moratorium, BP has balked at the suggestion. “A line has to be drawn somewhere,” said a person familiar with senior BP officials’ thinking. “And this would seem to be on the other side of that line.”


Rig owners and workers aren’t the only ones hurt — the costs are spilling onto shore, too. Chett Chiasson, executive director of Louisiana’s greater Lafourche port commission, said the six- month deep-water moratorium along with delays in shallow-wa- ter drilling could mean a loss of up to $750 million for the area and layoffs among the 4,000 workers there who provide sup- port to rigs. “It used to be that if fishing was down, people would go work on the rigs,” Chiasson said. “Now you’ve got fishing and shrimping gone, and now the drilling side of our economy is gone. It leaves us in a bad, bad situation.” Just up the bayou from Chias-


son’s office, outside a Conoco gas station, Kerry Romero, 49, of Lo-


“You’re not playing with a Tin- DANA HEDGPETH/THE WASHINGTON POST


Joe Boop said his crew will keep busy with cleaning and repairs.


reauville, La., took a break from the searing heat Thursday to chat with a fellow truck driver, Gary Nerry, 60, of New Iberia. Both men, who haul drill pipe and other supplies to Port Four- chon, said they’ve seen a slow- down in deliveries. Nerry said he’s lost about $4,000 of business in one week.


“If we don’t bring in stuff for them, then we don’t make nothing and we stay at home,” Nerry said, looking out at his 18-wheeler. It is not the new safety reg-


ulations that are causing problems for shallow-water rig operators. “We can live with that,” said Ran- dall Stilley, chief executive of Sea- hawk. But, he said, MMS officials are now too nervous to issue new permits without approval from senior administration officials. Stilley and Noe also argue that drilling in shallow water is inher- ently safer than in deep water. BP, which was leasing the Deepwater Horizon, has blamed the accident in part on the failure of the blow- out preventer, which was sitting on the seafloor a mile below the surface. But shallow-water jack- ups can keep their blowout pre- venters on the rig deck, making them easier to maintain. Boop, a 31-year veteran of rig work, showed off his bright red blowout preventer. “This is made so that you can close off Mother Nature,” he said. In a small office, just off the floor of the rig, a large brown box is used to operate the device. It has red and green buttons with black wording above each. One reads “kill line.” Another says “top pipe rams.” Another is labeled “choke line.” And the button of last resort: “Blind shear.” “If you can’t close it down any other way, the blind shear will cut that drill pipe in two,” Boop said. Crew members say they’re even more alert about safety regula- tions since the Deepwater Hori- zon tragedy, which killed 11 rig workers. A few of the men say they saw fire from the explosion in the distance.


kertoy out here,” Boop said. “ You have to stay on top of your busi- ness.” “We all know coming out here how dangerous this job can be, but now the Horizon incident has added a little extra thought to it,” said Andy Dent, 44, of Houston, a drill operator who has spent 18 years working on rigs. Now the threats to the rig workers are eco- nomic, regulatory and political, too. The Seahawk 2602 set up in this location on April 28, eight days after the Deepwater Horizon accident. Since then, the crew members have drilled three wells to tap natural gas under the ocean floor. They need to do more work on the wells — what’s known as ty- ing back on one well, prepping an- other to start pumping gas and digging 200 feet deeper on a third to reach a new gas reservoir. To do any of it, Seahawk needs new per- mits from the MMS. “If they’re not going to issue the permits, we’re going to sit here and freelance,” Boop said, ex- plaining that his crew would spend the weekend painting, maintaining equipment and cleaning the rig. That’s not the main mission of the Seahawk crew of about 40 men, including concrete mixers, mud loggers, roughbacks (a term for those who work the drills), roustabouts (men who offload supply boats of drill pipe and clean the rig), safety managers, cooks and other technicians. Ordinarily, the crew members work 12-hour shifts for 14 days straight. A crew leader notes the work they did every 30 minutes in computerized reports. They eat their meals in a galley


at two folding tables, as the rig sways ever so slightly. The cook’s two-week supply includes 3,000 pounds of ribs and beef, 400 pounds of chicken, 250 pounds of shrimp and fish, and two large pallets of bottled water and Gator- ade.


Over a lunch of fried shrimp,


fried catfish, fried okra, frog legs and potatoes, the men chat about how they spent 14 days off — camping and fishing with friends and family. Nearby, a local news- paper headline screams, “Spill Could Be Double the Size.” No one pays it any heed. After lunch, Boop holds one of his daily safety meetings. Up- dates: none. “I really don’t know what to tell


y’all,” he said to the men, as a few spit into plastic water bottles. “Right now, we don’t have per- mits.”


mufsons@washpost.com hedgpethd@washpost.com


Obama makes case for aid package aid from A1 Democrats, particularly in the


House, have voted for politically costly initiatives at Obama’s insis- tence, most notably health-care and climate change legislation. But faced with an electorate wide- ly viewed as angry and hostile to incumbents, many are increasing- ly reluctant to take politically un- popular positions. The House last month stripped


Obama’s request for $24 billion in state aid from a bill that would ex- tend emergency benefits for job- less workers. Senate Majority Leader Harry M. Reid (D-Nev.) hopes to restore that funding but with debate in that chamber set to resume this week, he acknowledg- es that he has yet to assemble the votes for final passage. Obama’s request for $23 billion to avert the layoffs of as many as 300,000 pub- lic school teachers has not won support in either chamber.


Mixed signals


Senior Democratic congres- sional aides said the White House is partially to blame for the failure of those initiatives to gain trac- tion because it has appeared to vacillate on whether additional spending on the economy is a clear priority. In recent weeks, for instance, the White House has appeared more intent on cutting spending — threatening to veto a defense bill over a jet engine project that the Pentagon views as unneces- sary and urging every agency to come up with a list of low-priority programs for elimination. Obama has also proposed a three-year freeze in discretionary spending unrelated to national security, an idea endorsed by leaders of both parties at a meeting at the White House last week, according to Obama’s letter. With the letter, however, Oba- ma makes a direct and unequivo- cal case for additional “targeted investments,” including state aid


and several less-expensive initia- tives aimed at assisting small businesses. He specifically calls for passage of the measure that is before the Senate, which would extend unemployment benefits and offer states additional aid, in- creasing deficits by nearly $80 billion over the next decade. Obama asks lawmakers to be


patient on the deficit, noting that a special commission is at work on a comprehensive deficit-re- duction plan. “It is essential that we continue


to explore additional measures to spur job creation and build mo- mentum toward recovery, even as we establish a path to long-term fiscal discipline,” Obama wrote. “At this critical moment, we can- not afford to slide backwards just as our recovery is taking hold.” In an interview, White House


Chief of Staff Rahm Emanuel said the letter is intended to settle the growing debate over the opposing priorities of job creation and def- icit reduction and “where you put your thumb on the scale.” “While some people say you


have to spend and some people say you have to cut, the president wants to talk about both cuts and investing,” Emanuel said.


GOP alternative Don Stewart, a spokesman for


Senate Minority Leader Mitch McConnell (R-Ky.), called the let- ter full of “contradictions.” “He’s calling on Congress to pass a [jobless] bill that will add about $80 billion to the deficit, but then calls for fiscal discipline; he says these measures need to be targeted and temporary, but then calls for extending programs passed in the stimulus more than a year ago,” Stewart said in an e- mail.


Republicans have offered an al-


ternative package that proposes to cover the cost of additional job- less benefits — but not aid to state governments — by cutting federal spending elsewhere. In contrast


to the Democratic bill, the GOP measure would reduce deficits by nearly $55 billion over the next decade, according to the non- partisan Congressional Budget Office. The politics of the Democratic


bill before the Senate are further complicated because it has be- come a grab bag of must-pass pro- visions. In addition to state aid and more money for jobless ben- efits, it includes a plan to extend $32 billion in expired tax breaks for individuals and businesses and a separate provision, known as the “doc fix,” that would post- pone until 2012 a scheduled pay cut for doctors who see Medicare patients.


When it was first unveiled last month, the total cost of the pack- age approached $200 billion, with only about $50 billion paid for through higher taxes on multi- national corporations, hedge fund managers and certain small busi- nesses. Conservative Democrats in the House balked, forcing House leaders to scale back the doc fix and strip out the state aid, as well as $6 billion in health in- surance subsidies for jobless workers. In the letter, Obama asks Congress to reconsider that deci- sion. The House narrowly ap- proved the trimmed-down bill. Now the Senate is struggling to assemble a 60-vote coalition for the measure. Reid moved last week to restore the state aid, but the CBO said the resulting meas- ure would add nearly $80 billion to budget deficits over the next decade. Moderates objected, say- ing they could not support such a big increase in borrowing at a time when the total national debt has topped $13 trillion, nearly 90 percent of the gross domestic product. On Saturday, as Obama called


for urgent action, senior Senate aides said the scramble for votes would delay final action on the bill for at least another week. montgomeryl@washpost.com


Chamberlain College of Nursing offers quality, accredited nursing degree programs, including our 3-year Bachelor of Science in Nursing degree.* Chamberlain features a student-centered learning environment with state-of-the-art skill labs and diversified, real world learning experiences. Our Arlington campus is now open at 2450 Crystal Drive, on the DeVry University Campus with no current waiting list to enroll. Launch a rewarding career in nursing today.


Visit the new Arlington (Crystal City) campus. Open house: Thursday, June 17th from 4pm -7:30pm ET


2450 Crystal Drive (conveniently located near the Crystal City metro station)


Complimentary parking with ticket validation is available in “Century One & Two Parking” – entrance off of Crystal Drive.


For more information: chamberlain.edu/arlington or 703.416.7300


S


A7 InMemoriam


GALEN D. POWERS 1936-2010


PPSV celebrates the life and legacy of its founder, Galen Powers, who passed away onMay 27, 2010.


Mr. Powers, a founding father of health law, enjoyed an illustrious career in public service and private practice. In 1977 he was appointed the first Chief Counsel to the Health Care Financing Administration, predecessor of the Centers forMedicare& Medicaid Services. In 1983 he founded the Washington, D.C. law firm that has become Powers Pyles Sutter & Verville PC, now nationally recognized in health care, education, and the lawof tax-exempt organizations.


1501MStreet, NW Seventh Floor


Washington, DC 20005


Tel. 202.466.6550 PPSV.com


Formore than 20 years he was regularly recognized as one of themost prominent health lawyers. Among many corporate and non-profit Board positions, he served as one of the first Presidents of the AmericanHealth LawyersAssociation.


Galen Powers will be long remembered and sorely missed by colleagues for his vision, creativity, leadership and courage. His mentorship to young lawyers was instrumental in the success of the lawfirm that bears his name.He leaves a diverse and enduring legacy.


Why Should NewCars Get All the Breaks?


New, Used orRefinanced AS


Same LowRates –


LOW AS


3.49%


A P R


Double refi rebate up to


when you bring us your loan fromanother lender.


$200


APPLY TODAY AT


nwfcu.org/post USE PROMO CODE: post


Annual Percentage Rate (APR) subject to change without notice. Rate based on evaluation of credit history; your rate may differ. Internal refinances excluded. Other restrictions apply.


Now enrolling for the summer semester - starts July 6th!


Arlington Campus: 2450 Crystal Drive Arlington, VA 22202 I chamberlain.edu/arlington


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156  |  Page 157  |  Page 158