Econwatch
By

Ken Millstone /

CNET/ June 17, 2010, 9:55 AM

Live Blog: BP CEO Faces Congressional Ire

Hayward, center, arrives on Capitol Hill June 17, 2010.

Live coverage of the House Committee on Energy and Commerce hearing on "The Role of BP in the Deepwater Horizon Explosion and Oil Spill." The committee is probing what caused the April 20 rig explosion that killed 11 workers and caused the subsea oil gusher that is releasing an estimated 60,000 barrels per day into the Gulf of Mexico. BP CEO Tony Hayward testifies a day after the energy giant agreed to create a $20 billion fund for damage claims.

5:37 p.m. ET: Stupak gaveled the hearing to an end but not before thanking Hayward for attending and then criticizing his answers as unhelpful to the committee.

"The evasiveness of your answers have increased the frustration, not decreased the frustration," Stupak said.

Colorado Democratic Rep. Diana DeGette, the committee's vice chair, referred to the evasiveness of Hayward's answers shortly before the hearing ended.

DeGette asked whether BP was committed to reimbursing long-term health care costs for cleanup workers.

"Twenty billion dollars is a very large fund to pay claims," Hayward said after saying that decision was up to the independent adjudicator.

"This is what is concerning members of this committee and others about BP's response here," DeGette said. "You evade questions."

4:53 p.m. ET: Markey gets another shot. He and several congressmen have recently called out Hayward for his constant references to the blowout preventer on the well as a "failsafe" and pointed out standing evidence of ways the preventer could fail.

4:33 p.m. ET: Hayward has referred all day to the company's ongoing investigation into the explosion and said that BP will make the findings available as it reaches them and take "appropriate actions" in response. Waxman asks, "Why should we rely on you to do your own investigation?" Hayward says others are investigations as well and reiterates that he will share the results.

4:13 p.m. ET: Hayward says the deepwater drilling moratorium is "Probably the right thing to do until we have clarity."

3:47 p.m. ET: Louisiana Republican Steve Scalise is asking questions, and began by holding up a picture of an oiled pelican. A little gimmicky? Perhaps. But you could hear a thousand camera shutters - silent for the past few hours - clicking in the background, so the gimmick seems to have gotten the job done.

3:38 p.m. ET: Members of the full committee who are not on the investigations subcommittee are now asking questions. Rep. Cliff Stearns, R-Fla., got Hayward to say at least a dozen times that "There is no evidence of reckless behavior" by BP in advance of the explosion and spill.

3:22 p.m. ET: At the conclusion of his questioning time, Barton took a moment to apologize for his earlier comments. He didn't invoke them directly, but said that he feels BP is responsible for the disastrous leak and should be fully liable for paying for the clean-up and economic damage to American citizen. He said that if any of his comments today have been "misconstrued" to suggest otherwise, he apologizes.

3 p.m. ET: Ross now says that since his opening statement, 416,666 gallons of oil have leaked into the Gulf.

"It's rare that you hear Democrats and Republicans on this panel agreeing with one another," he says, but that is exactly what's happening today in both sides' criticism of BP.

Watch Hearing Online at CBSNews.com
Hayward's Written Testimony
Committee Letter to Hayward
Protester Disrupts Hayward Testimony
Rep. Joe Barton Apologizes Hayward
Special Section: Disaster in the Gulf

2:42 p.m. ET: Rep. Bruce Braley, D-Iowa, just tore into Barton's comments apologizing to BP and describing BP's meeting with the president yesterday at the White House as "a shakedown."

Braley tried repeatedly to get Hayward to deny that it was a shakedown, or the claims fund a "slush fund," but Hayward didn't really bite and relinquish the biggest gift he's been given all day. He just said, "We came together to figure out a way of working together to resolve what is clearly a very, very serious situation."

Rep. Bart Stupak, D-Mich., questions BP CEO Tony Hayward

2:26 p.m. ET: Markey presents substantial scientific evidence - both from the government and academic experts - showing the presence of underwater plumes of oil far from the spill site and asked Hayward if he is now "once and for all prepared to concede" the existence of the plumes.

Hayward said that there is "oil in very low concentrations ... distributed throughout the column."

"There are concentrations of oil of about 0.5 parts per million," he said, but insisted that only some of that oil is attributable to the BP spill.

He added, "I'm not an oceanographic scientist."

2:15 p.m. ET: Stupak tells Hayward that during the recess, several members of the committee approached him "extremely frustrated by your lack of candor and your inability to answer their questions."

"You have not provided us with direct answers," he said, noting that the committee granted Hayward an extra week to prepare for the hearing at BP's behest. "I hope you will be more forthcoming and less evasive with your answers for the remainder of this hearing."

BP CEO Tony Hayward: Don't Blame Me

2:12 p.m. ET: The hearing is resuming. The congressmen have done all their voting for the day and there will be no more recesses (sorry kids!).

1:06 p.m. ET: The committee is back in recess for members to vote.

As Stupak was calling the recess, Burgess burst out to complain that the Minerals Management Service had not appeared at any of the hearings so far to answer for the regulatory failures that led up to the spill. He said, in effect, that MMS needed to answer questions because Hayward wasn't doing so.

An annoyed Stupak noted that there are are least two more hearings already scheduled and that other aspects of the investigation would be addressed in due course, but also said, "MMS is not going to help Mr Hayward answer the questions. Mr. Hayward has to do that himself."

Burgess seemed slightly chastened, pivoting back to a rant about Hayward's irresponsibility as Stupak hit the gavel and cut off the microphone.

12:58 p.m. ET: Dingell asks Hayward a staccato series of yes-or-no questions on BP's decisions related to the well construction - How much money was saved by that decision? How much time? Can you assure me that the decision was not made to save time and money? Hayward almost invariably answers that he doesn't know, can't answer, or wasn't party to the decision.

Dingell invariably replies, "Please submit that for the record." He concludes, "I'll look forward to seeing those answers in the record."

12:49 p.m. ET: Sullivan touts an oft-quoted statistic that never gets old. From 2005-2010, BP was cited for 760 serious safety violations. During the same time, Sunoco had eight., ConocoPhillips had eight, Citgo had two and ExxonMobil had one.

"We acknowledge the problems we had in 2005 and 2006," Hayward says.

12:44 p.m. ET:  Stupak has been fairly firm on limiting members to three minutes of questioning, but Waxman was given significantly more time.

"I'm just amazed at this testimony," he says. "You're not taking responsibility, Mr. Hayward. ... You're kicking the can down the road."

12:41 p.m. ET: Waxman presses Hayward on whether he met the commitment he made upon become CEO to a "laser-like focus" on safety. Hayward says the company has made "significant progress" during his tenure.

12:33 p.m. ET: Republican Rep. Michael Burgess (Tex.) reiterates that unlike his colleague Mr. Barton he "will not apologize" to BP and is questioning Hayward fairly aggressively.

On the topic of whether there are other wells in the Gulf of Mexico that pose the same blowout risks, Hayward says, "There are many wells in the Gulf of Mexico that have the same casing design. There are many wells where the same cement procedure has been used."

12:18 p.m. ET: Hayward just reentered the chamber, flanked by two police officers. Stupak is reconvening the hearing.

11:50 a.m. ET: The protester who interrupted Hayward's opening statement appears to be the same woman arrested at a Senate hearing last week - Diane Wilson, a Texas shrimper and activist and co-founder of Codepink for Peace, CBS News' Brian Montopoli reports.

At that hearing, Wilson dumped what appeared to be oil on herself to protest Alaska Sen. Lisa Murkowski's blocking of a bill that would have lifted BP's liability cap.

11:33 a.m. ET: Stupak calls a recess to allow members to attend three votes before the question-and-answer period begins. The festivities continue at noon ET.

11:29 a.m. ET: Hayward begins saying that the explosion, fire, and resulting oil spill "never should have happened."

"When I learned that 11 men had lost their lives, I was personally devastated," he says and - directly addressing the people of the Gulf region - adds, ""I know that this incident has had a profound impact on your lives and has caused great turmoil."

11:26 a.m. ET: Hayward is sworn in. As he is about to begin his opening statement, a woman protester in the gallery bursts out screaming. She has to be brought to the floor by several Congressional police officers.


11:24 a.m. ET: Rep. Betty Sutton, D-Ohio, says, "It's unconscionable when companies pay more attention to their costs and their profits than to their own workers' safety. ... Like many Americans, I feel physically sick when I see the clips of the oil gushing in the Gulf."

She is at least the third member of Congress to quote a BP official's e-mail in which - referring to the decision not to use a safety device known as "centralizers" - he said, "who cares, it's done, end of story, will probably be fine."

11:08 a.m. ET: Rep. Mike Ross, D-Ark.: "Since this hearing began a little over an hour ago, Mr. Hayward, up to 112,947 gallons have been dumped into the Gulf."

11:05 a.m. ET: The members' opening statements continue, and will for a while before Hayward gets to utter word one. GOP Rep. Parker Griffith of Alabama commented that the committee would be remiss not to point out that smoking is the greatest disaster perpetrated by corporations in the U.S.

The oil spill "is not going to be the worst thing that ever happened to America," said Griffith, a cancer specialist.

Hayward is sworn in

10:46 a.m. ET: Rep. John Dingell, D-Mich., is chairman emeritus of the committee. He runs through a greatest hits reel of Hayward's less-than-eloquent (and many say outright deceptive) comments about the scope of the disaster.

"I just happen to be a poor Polish lawyer from Detroit," he says, but Hayward does not seem to be doing a good job as CEO, much less of managing or taking responsibility for the disaster. "It makes me wonder what the compensation package of our witness will be this year."

10:40 a.m. ET: Oklahoma Republican John Sullivan is the first committee member to directly address the cap-and-trade energy bill meant to address global warming, which passed the House last year but has languished in the Senate. He calls it "disastrous."

10:33 a.m. ET: Rep. Edward Markey, D-Mass., head of the Subcommittee on Energy and Environment, takes over.

"I want to begin by disagreeing in the strongest possible terms with what Mr. Barton said," Markey says. "It is BP's spill, but it is America's ocean and it is American citizens who are being harmed."

He says families in the Gulf will be "crushed" without the compensation fund.

Far from being a "slush fund," Markey says, "It is in fact President Obama ensuring that a company which has despoiled the waters of our nation is held accountable for the harm that it has done to our nation. ... This is, in my opinion, the American government working at its best."

10:25 a.m. ET: Stupak gives his opening statement, among other things calling Hayward out for a newspaper quote from shortly after he took over as CEO in which he said the company is "too cautious."

He said Hayward owes the committee answers: "You owe it to all Americans. We are not small people."

Hayward is seen with protesters in the background.

10:17 a.m. ET: Waxman ends his statement by pivoting to the broader question of energy policy, saying, "We need to start down a path to a clean energy future."

Rep. Joe Barton, R-Tex., the ranking member of the full committee, takes over and immediately takes BP's defense.

"We have kind of a dual track underway in my opinion. We obviously are trying to gather the facts," he says. But he adds - speaking only for himself and not the Republican Party, he says - "I'm ashamed of what happened in the White House yesterday. I think it is a tragedy of the first proportion that a private corporation can be subjected to what I would characterize as a shakedown - in this case a $20 billion shakedown."

Barton then, somewhat remarkably, apologized to BP.

"I apologize," he said. "I do not want to live in a country where any time a citizen or a corporation that does something wrong ... is subjected to what in my opinion, amounts to a shakedown."

10:10 a.m. ET: Full committee chairman Henry Waxman, D-Calif., is making his opening statement. He promises to take Hayward to task about a trove of internal documents that demonstrate BP's recklessness in advance of the explosion and oil spill.

"We can find no evidence that you paid any attention to the tremendous risks that BP was taking," he says. "There is not a single document or e-mail that shows you paid even the slightest attention to the dangers at this well."

10:05 a.m. ET:  Rep. Bart Stupak, D-Mich., chair of the subcommittee on Oversight and Investigations, calls the hearing to order. He said that several of the congressmen present are members of the full Energy and Commerce committee but not the subcommittee, and lays down some ground rules for who will get to make statements and ask questions.

10 a.m. ET: Protesters are holding signs in the gallery with slogans like "BP Lies" and "BP Kills."

9:58 a.m. ET: Hayward is in the committee chamber, surrounded by a huge gaggle of photographers.

9:55 a.m. ET: On Tuesday, the committee grilled the chief executives from ExxonMobil, Chevron, ConocoPhillips and Shell - as well as BPAmerica CEO Lamar McKay - about the companies' "cookie-cutter" disaster response plans, which included phone numbers for dead scientists and sections on mitigating harm to walruses, which haven't lived in the Gulf of Mexico for millions of years.

© 2010 CBS Interactive Inc.. All Rights Reserved.
  • Ken Millstone

    Ken Millstone is an assignment editor at CBSNews.com

88 Comments Add a Comment
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Dumfriesman says:
by brianbwb2011 June 17, 2010 3:23 PM EDT
"The real buffoon seems unable to understand this, and will side with a foreign corporation doing harm to the nation's food supply, and it's economy through gross negligence."
=
Across the pond here,we are perplexed by Obama's constant determination to ephasise the Britishness of BP when it is at least 40% American,with American contractors and rigs.Your reference to 'foreign corporation' illustrates this point.I would also remind Americans that you are the biggest consumers of the oil that is produced worldwide and that we Brits have 10,000 men fighting alongside your men in the Middle East.Lighten up.Let's jus hope that oil spill gets fixed soon and stop trying to blame anybody but ourselves of our greedy consumerism.
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carlossanchez12 says:
Congress is pathetic to the max. Sick of these politicians. They have no clue.
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ongelooflijk-2009 says:
It?s official! With their continued efforts to prevent legislation that would increase the cap limits of liability for damages related to oil spills and Representative Joe Bartons heart felt apology to BP CEO Tony Hayward for being asked by the President to ?walk the talk? in making a good faith gesture by setting aside $20 billion in an escrow account towards compensation to small businesses in the Gulf region impacted by the spill, the GOP, the Party of NO is now the GOBP-----Say yes to Big Oil!!!
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reutersexposed says:
Speaking of rat executives, check out the video just released at ReutersExposed.com about Thomson Reuters and their executives.
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egresor says:
i just saw barton's supposed apology


what a joke

he didn't actually apologize for any but his words being misconstrued

misconstrued?

how do you misconstrue what he asid

aploggizing to bp for the president extorting money from a private corporation

creating a virtual slush fund

how do you misconsture those words?

the answer is you cannot and the people know it too

what he feared was the wrath of the people and he wills till get that when it's time for elections

he'll find those words will come back to haunt him and i doubt very much he will be returned to office

the people are often dense in disccerning who really cares about them and barton will have no place to hide when he faces an oppenent for re-election

you can write that down as amateur prophecy

barton is done for and his lame apology will not be suffiecient to hide behind in an open political debate and electorial campaigne

good by mr barton

with your staements you've shown you were not elect3ed to protect the american people but big business
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wjksea says:
by cleantheDCcesspool June 17, 2010 5:58 PM EDT
govmess

Pretty much summed it up. Thanks.
----------------------------------------------------

Get to the bathroom and wipe your hands.
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wjksea says:
Crony global capitalism and the fascists who have been in the government for too many years are robbing the American people of life, liberty and the pursuit of happiness.
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wjksea says:
The Obama haters really hate America and beyond. To them, America and the world beneath their feet is like a ho they can drill, dump on and leave dead.
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Dumfriesman replies:
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What is your point? It seems that Obama is trying to create hate of England to cover up his own failure to do anything.Half of BP is American,but everybody seems to be forgetting this!
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govmess says:
Tony Hayward is doing an outstanding job at showing the American public what idiots we have running this government. He has made it very clear that decisions were made and those decisions were approved by Obama's Mineral Management Services department. Focusing on a couple million dollar savings shortcut for a company this size is like saving a penny on a new car purchase. Mr. Hayward is right to say his primary focus is on stopping the leak and protecting/cleaning up the gulf waters. Our government has been the hindrance and significant contributor to the disaster...and this stupid, untimely questioning proves it. I have every confidence that when Mr. Hayward's investigation is complete he will be able to answer questions...appropriate timing is something politicians don't understand having no real life corporate experience. I kept laughing at the questions because if you inserted the words Health Care Reform/Cap and Trade/Wall Street Bailout or Auto take over in place of the word BP in the questions and those questions were directed to our President, or Harry Reid, or Nancy Pelosi what would their aswers be? Lastly, Mr. Hayward's opening remarks were clear, direct and to the point. Oh that Mr. Obama had the same speech writer.

If I owned BP stock I would be proud of Mr. Hayward as my CEO...he stayed calm, and responded appropriately to all the stupid questions. It made me ashamed to watch our elected officials rush to judgment with documents that were not being presented in context. And to listen to them pander about why as CEO he couldn't offer details...wasn't it Nancy Pelosi who said guess we'll finde out what's in the Health Care legislation after it's passed and none of them took the time to read it. Such hypocrits; they all need to be replaced.
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brianbwb2011 replies:
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So BP gets an OK from you for the harm they have done to the gulf, to the US seafood supply, and to the health, lives, and livelihoods of Americans.

And you have nerve to criticize politicians who don't share your degree of ASPD.

Typical.
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brianbwb2011 says:
" by cleantheDCcesspool June 17, 2010 4:46 PM EDT
I am not off topic, congress is wasting its time in order to shift blame from the obamao administration. And they who are without sin should not cast stones."

Yet still you spew. BP is at fault here, any shortcomings in regulatory supervision by the current administration not only do not absolve BP of blame, but are simply continuations of policies you loved when the Bush administration was setting them into place.

Your comment is like saying that a rapist is not to blame, because the cops are at the donut shop.
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