A4
Politics & The Nation
Prosecutors opt against delaying start of embassy-bombing trial
REUTERS
new york — Prosecutors said Sunday that they will not appeal a U.S. judge’s refusal to let a key witness testify in the first crimi- nal trial of a terrorism suspect
EZ SU
KLMNO
MONDAY, OCTOBER 11, 2010 U.S.won’t appealwitness ban inGuantanamo suspect’s case
from the Guantanamo Bay mili- tary prison in Cuba. “The government . . . has de-
cided not to pursue an appeal from the court’s decision,” said a letter from the U.S. attorney for the Southern District to the pre- siding judge in the case. The trial of Ahmed Khalfan
Ghailani at the federal court in Manhattan was delayedWednes- day when Judge Lewis Kaplan ruled against the participation of a key government witness.
Ghailani, 36, is a Tanzanian
charged with conspiring with Islamic militants to bomb the U.S. embassies in Tanzania and Kenya in 1998. He faces life in prison if convicted in the attacks, which killed 224 people. Prosecutors had wanted the
court to hear testimony from Tanzanian witness Hussein Abe- be. They say Abebe told FBI agents that he sold Ghailani explosives that were used in one of the bombings.
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The defense argues that Ghai-
lani was coerced into naming Abebe and that he should not be allowed to testify. From the outset, prosecutors
said they would not use any statements Ghailani may have made while in CIA custody after his July 2004 arrest in Pakistan. Prosecutors have acknowledged that those statements probably were coerced. But Kaplan ruled Wednesday
that the government would not have been able to find Abebe without those statements, and he
refused to let him testify. The judge said he would not allow coerced testimony to be admit- ted into civilian courts. In Sunday’s letter, U.S. Attor-
ney Preet Bharara said the gov- ernment did not wish to delay the trial with an appeal, adding that its case was sufficient with- out Abebe’s testimony. Bharara said foreignwitnesses
and victims had already arrived in New York and were counting on the trial’s original start date. Ghailani’s trial is being watched closely as a test of
President Obama’s approach to handling the 174 suspected ter- rorists held at Guantanamo Bay, including Khalid Sheik Moham- med, the self-described master- mind of the Sept. 11, 2001, at- tacks. The Obama administration
has adopted what it calls a flexible approach, favoring mili- tary tribunals in some cases and civilian trials in others. Many Republicans say all terrorism suspects should be tried in mili- tary tribunals.
U.S., Chinese firms enter shale deal
Chesapeake Energy and CNOOC team up for Texas oil, gas project
BY STEVEN MUFSON The China National Offshore
Oil Corp. will pay Chesapeake Energy $2.2 billion for a one- third interest in a South Texas oil and natural gas shale project and will pay billions of dollars more for its share of development costs over the next several years. Chesapeake Energy, an Okla-
homa City-based domestic explo- ration company, announced the deal Sunday night, saying it will help speed development of re- sources on 600,000 acres in the Eagle Ford shale play that could help keep natural gas prices low and boost production of uncon-
ventional U.S. oil resources. “They’re providing the capital
and we’re providing the exper- tise and assets, and the output will be the development ofAmer- ican assets, less U.S. dependence on foreign oil and the creation of 20,000 jobs and tax revenues for all levels of government,” Aubrey K. McClendon, Chesapeake’s chief executive, said in an inter- view. The investment by CNOOC is
one of the company’s biggest. Other CNOOC investments around the world have been aimed in part at securing sources of oil for China’s growing econo- my, but this investment will not result in any oil shipments to China. Chesapeake will sell the resources, almost certainly in the United States, and send CNOOC its share of the proceeds. Chesapeake has been seeking to raisemoney to help develop its
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extensive inventory of oil and gas acreage. The company has also been trying to pare its debt, which peaked at about 60 per- cent of the company’s book value and which on Sept. 30 stood at about 42 percent. McClendon said the company’s target was in the 30s. CNOOC will pay $1.1 billion
nowand another $1.1 billion over the next two years by covering 75 percent of Chesapeake’s share of development costs. After that, CNOOC will pay a third of the cost of all wells, which run about $6 million each and could num- ber 5,000 or more over the next few years as the region is devel- oped,McClendon said. Chesapeake said CNOOC’s in-
vestmentwill enable Chesapeake to quadruple the number of rigs it has drilling in the region to about 40 by the end of 2012. Given the cost of development,
many independent companies such as Chesapeake have been looking overseas for investors. U.S.-based oil giants such as ExxonMobil and Conoco Phillips already have stakes in the region. Last week, Statoil and Talisman bought about 100,000 acres from Denver-based Enduring Re- sources. They paid about the same price as CNOOC did for its interest. China has some shale gas, but
the deal with Chesapeake does not involve any technology transfer or future project in Chi- na, McClendon said. He said Chesapeake has its hands full trying to develop resources in the United States. Unlike shale developments
elsewhere in the United States, the Eagle Ford has greater poten- tial to produce crude oil as well as natural gas, McClendon said. He estimated that the United States could ultimately produce half a million barrels a day from shale. The country consumes 19.5 million barrels of oil a day, most of it imported. The development of oil and
gas from shale has aroused con- troversy over questions of how it would affect water supplies. And so far, most shale developments in the United States recently have produced natural gas,much of it from Pennsylvania and oth- er parts of the northeast. “Chesapeake’s embedded safe-
ty culture and integrated envi- ronmental protection strategies will be adopted to safeguard personnel and the surface and subsurface environment,” Chesa- peake said in its news release.
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