CBS/AP/ June 2, 2010, 2:46 AM

BP Frees Saw Stuck in Underwater Oil Well Pipe

Last updated 6:38 p.m. EDT

BP has freed a diamond-tipped saw that had become stuck underwater in the latest attempt to contain the Gulf oil spill, and the company is still working on a way to slice through the pipe.

Special Section: Disaster in the Gulf

BP PLC spokesman Mark Proegler said Wednesday afternoon that the company is working out some logistical issues.

The plan is to fit a cap on the blown-out well at the bottom of the Gulf of Mexico to capture most of the spewing oil.

As robot submarines worked underwater, the nation's worst oil slick drifted perilously close to the Florida Panhandle.

The saw is the latest attempt to contain - not plug - the gusher. The best chance at stopping the leak is a relief well, which is at least two months from completion.

"I don't think the issue is whether or not we can make the second cut. It's about how fine we can make it, how smooth we can make it," Allen said.

If the cut is not as smooth as engineers would like, they would be forced to put a looser fitting cap on top of the oil spewing out. This cut-and-cap effort could temporarily increase the flow of oil by as much as 20 percent, though Allen said officials wouldn't know whether that had happened until the cut could be completed.

While the saw was stuck, live video showed oil spewing out of the new cut, and crews were shooting chemicals to try to disperse the crude. The cap could be placed over the spill as early as Wednesday.

The effort underwater was going on as investors ran from BP's stock for a second day, reacting to the company's weekend failure to plug the leak by shooting mud and cement into the well, known as the top kill.

The Justice Department also has announced it started criminal and civil probes into the spill, although the department did not name specific targets for prosecution.

Feds Open Criminal Probe of Gulf Oil Spill

CBS News correspondent Mark Strassmann reports that the BP is facing a possible fine even greater than the $1 billion Exxon was ordered to pay in the Valdez disaster -- and that is separate and apart from any criminal damages the British oil giant may be found liable for.

If BP executives are found guilty of deliberately misleading the government, they could face jail time, reports CBS News chief legal correspondent Jan Crawford.

"Several Senators already have accused BP of making false statements -- not only in getting the permits to dig that well, but also in kind of underplaying the gravity of the spill," said Crawford.

Meanwhile, President Barack Obama said in prepared remarks that it was time to roll back billions of dollars in tax breaks for oil companies and use the money for clean energy research and development. He said the catastrophic Gulf oil spill shows the country must move toward clean energy, tapping natural gas and nuclear power and eliminating tax breaks for big oil.

Shares in British-based BP PLC were down 3 percent Wednesday morning in London trading after a 13 percent fall the day before. BP has lost $75 billion in market value since the spill started with an April 20 oil rig explosion and analysts expect damage claims to total billions more.

In Florida, oil was about seven miles south of Pensacola beach, Allen said.

Thunderstorms were making it difficult to track the slick, Escambia County emergency director John Dosh said, and officials hoped the weather would clear so they could get an aerial view.

It was raining and cloudy at the beach off and on. The four pirate flags on top of Peg Leg Pete's Oyster Bar on the beach where flapping eastward, which could send the oil closer to shore. Peg Leg Pete's is a beach institution frequented by boaters who pull up behind the restaurant in a cove off Pensacola Bay.

It was a slow Memorial Day weekend. Hundreds of tourists enjoyed the turquoise waters, but it wasn't as busy as usual.

"We are looking at a Wednesday to Friday shoreline impact, but there is a line of uncertainty that depends on the wave action and the winds," Dosh said.

"Today we are in a monitoring mode."

Emergency crews began scouring the beaches for oil and shoring up miles of boom, though choppy waters from thunderstorms could send the oil over the protective lines. County officials are using the boom to block oil from reaching inland waterways but plan to leave beaches unprotected because they are easier to clean up.

"It's inevitable that we will see it on the beaches," said Keith Wilkins, deputy chief of neighborhood and community services for Escambia County.
(AP/CBS/NOAA)

The oil has been spreading in the Gulf since the Deepwater Horizon rig exploded six weeks ago, killing 11 workers and eventually sinking. The rig was being operated for BP, the largest oil and gas producer in the Gulf.

Crude has already been reported along barrier islands in Alabama and Mississippi, and it has polluted some 125 miles of Louisiana coastline.

Allen, the national incident commander for the spill, said the threat of oil hitting the coast was shifting east and skimmer vessels would be working offshore to intercept as much crude as possible.

Earlier this week, BP officials said they were concentrating cleanup efforts in Louisiana because they did not expect oil to reach other states. The company has set up floating hotels on barges to house cleanup crews closer to the Louisiana shores.

In Venice, La., hundreds of oil response workers were grounded by storms and many local fishermen hired in the so-called vessels of opportunity program were sent home early. Venice is a major staging center for the oil response, with nearly 1,500 workers and dozens of boats in this small town in the marshes.

"Boats were staged and ready to go" in case there was a break in the weather, said BP spokesman Mike Abendoff.

Some work continued, including at a 32-acre site where an "employee village" is being built to eventually house as many as 1,500 workers in trailers. Abendoff hoped to start putting some workers there by early next week.

More federal fishing waters were closed, too, another setback for one of the region's most important industries. More than one-third of federal waters were off-limits for fishing, along with hundreds of square miles of state waters.

Fisherman Hong Le, who came to the U.S. from Vietnam, had rebuilt his home and business after Hurricane Katrina wiped him out. Now he's facing a similar situation.

"I'm going to be bankrupt very soon," Le, 53, said as he attended a meeting for fishermen hoping for help. "Everything is financed, how can I pay? No fishing, no welding. I weld on commercial fishing boats and they aren't going out now, so nothing breaks."

BP has tried and failed repeatedly to halt the flow of the oil, and the latest attempt like others has never been tried before a mile beneath the ocean. Experts warned it could be even riskier than the others because slicing open the 20-inch riser could unleash more oil if there was a kink in the pipe that restricted some of the flow.

© 2010 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
128 Comments Add a Comment
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afriend06 says:
Watching the news now...who really cares about all the money BP is losing...They KNEW this rig was bad but money talks right, had to drill into it to get their money. Shame on you BP..killing off all the things that were here before us..We need to come together and realize the earth is not happy with us we are abusing our resources.
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JOltman says:
At this point, the engineers should start paying attention to the ordinary layman's suggestions to stop the oil leak. I suggest sending a submarine down and shoot the same sized UNARMED torpedoes directly down the pipe to block the flow of oil.
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mary-miami says:
BP is probably going to use this as an excuse to increase the price of petrol...They have never cared about the land or the people being affected; if they had ever cared they wouldve had a back-up plan for an emergency like this one. I saw an interview where one of them said that he wanted "his life back"...Right, the private spas, golf games, etc...not real work like the workers that were killed in the disaster.
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noloyalisti says:
This is just one really good example of the utter failure of the Reagan myth of small government. It is a demonstration of the ridiculous experiment of free-trade, privatization and globalization.

In fact we have FUBARed our entire economy based on Reaganomics. We will be finding out about the tragedy of it for a hundred years before we can correct the damage.
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noloyalisti says:
After they fix this we need to seize all their assets to pay for the damage. http://www.seizebp.org/
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Empire-George- replies:
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by noloyalisti June 3, 2010 12:31 PM EDT

You need to be seized, for treason against this country.
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rightbehind says:
They might even want to save the drill pipe and use it to pump a sealant to the drill head.
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rightbehind says:
Any engineers out there thought about back filling the pipe with lead shot?
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bruce789 says:
Added note on diamond grinder blade. I used this on angle grinder. Polishing attachment needs angle grinder with 5/8" 11 thread. Thinner diamond blades get stuck easy, other types have wider kurf and they can act like grinder also. Really works on steel, but watch for flying diamond bits.
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bruce789 says:
I've used similar blades on granite kitchen counter slabs, and a diamond grinder blade works good, also found handy for steal, got my diamond tools on ebay from Taiwan seller. Blade stuck, just cut from other side. It cuts rock easy. Grind it to smooth out jagged pipe cut, w/4" polishing pad attachment you can make it shine, 50 up to 3,000 grit (diamond dust bits per sq inch) pads. Or instead of that, maybe use a 1/2 rubber washer glued to the bottom of the cap would yield to irregularities.
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MyVette04 says:
A solution for containing the spill is simple and foolproof. The idea came to me as all great ideas do, and this spill can be stopped almost instantly. I'll be happy to share it with those who can and will give it consideration. This is not the time for experimenting as they have been. My idea will work, and all that needs to be done is to put it to the test. So who can I talk to so as to bring this disaster to an end?
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