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Oversight Hearing Committee OUTER CONTINENTAL SHELF OIL AND GAS STRATEGY AND IMPLICATIONS OF THE DEEPWATER HORIZON RIG EXPLOSION: PARTS 1 AND 2 OVERSIGHT HEARING BEFORE THE COMMITTEE ON NATURAL RESOURCES U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED ELEVENTH CONGRESS SECOND SESSION Wednesday and Thursday, May 26 and 27, 2010 Serial No. 111-54 Printed for the use of the Committee on Natural Resources ( Available via the World Wide Web: http://www.gpoaccess.gov/congress/index.html or Committee address: http://resourcescommittee.house.gov U.S. GOVERNMENT PRINTING OFFICE 56-675 PDF WASHINGTON : 2010 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Nov 24 2008 12:23 Aug 13, 2010 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 L:\DOCS\56675MRG.TXT Hresour1 PsN: KATHY COMMITTEE ON NATURAL RESOURCES NICK J. RAHALL, II, West Virginia, Chairman DOC HASTINGS, Washington, Ranking Republican Member Dale E. Kildee, Michigan Don Young, Alaska Eni F.H. Faleomavaega, American Samoa Elton Gallegly, California Frank Pallone, Jr., New Jersey John J. Duncan, Jr., Tennessee Grace F. Napolitano, California Jeff Flake, Arizona Rush D. Holt, New Jersey Henry E. Brown, Jr., South Carolina Rau´ l M. Grijalva, Arizona Cathy McMorris Rodgers, Washington Madeleine Z. Bordallo, Guam Louie Gohmert, Texas Jim Costa, California Rob Bishop, Utah Dan Boren, Oklahoma Bill Shuster, Pennsylvania Gregorio Sablan, Northern Marianas Doug Lamborn, Colorado Martin T. Heinrich, New Mexico Adrian Smith, Nebraska Ben Ray Luja´n, New Mexico Robert J. Wittman, Virginia George Miller, California Paul C. Broun, Georgia Edward J. Markey, Massachusetts John Fleming, Louisiana Peter A. DeFazio, Oregon Mike Coffman, Colorado Maurice D. Hinchey, New York Jason Chaffetz, Utah Donna M. Christensen, Virgin Islands Cynthia M. Lummis, Wyoming Diana DeGette, Colorado Tom McClintock, California Ron Kind, Wisconsin Bill Cassidy, Louisiana Lois Capps, California Jay Inslee, Washington Joe Baca, California Stephanie Herseth Sandlin, South Dakota John P. Sarbanes, Maryland Carol Shea-Porter, New Hampshire Niki Tsongas, Massachusetts Frank Kratovil, Jr., Maryland Pedro R. Pierluisi, Puerto Rico James H. Zoia, Chief of Staff Rick Healy, Chief Counsel Todd Young, Republican Chief of Staff Lisa Pittman, Republican Chief Counsel (II) VerDate Nov 24 2008 12:23 Aug 13, 2010 Jkt 000000 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 L:\DOCS\56675MRG.TXT Hresour1 PsN: KATHY CONTENTS Page Hearing held on Wednesday, May 26, 2010 .......................................................... 1 Statement of Members: Grijalva, Hon. Rau´ l M., a Representative in Congress from the State of Arizona, Prepared statement of ............................................................... 136 Hastings, Hon. Doc, a Representative in Congress from the State of Washington .................................................................................................... 3 Prepared statement of ............................................................................... 5 Rahall, Hon. Nick J., II, a Representative in Congress from the State of West Virginia ............................................................................................ 1 Prepared statement of ............................................................................... 3 Statement of Witnesses: Birnbaum, S. Elizabeth, Director, Minerals Management Service, U.S. Department of the Interior ........................................................................... 105 Prepared statement of ............................................................................... 107 Kendall, Mary L., Acting Inspector General, U.S. Department of the Interior ........................................................................................................... 67 Prepared statement of ............................................................................... 69 Memoranda and Investigative Reports .................................................... 70 Lubchenco, Jane, Ph.D., Under Secretary of Commerce for Oceans and Atmosphere, and NOAA Administrator, National Oceanic and Atmos- pheric Administration, U.S. Department of Commerce ............................. 97 Prepared statement of ............................................................................... 99 Salazar, Hon. Ken, Secretary, U.S. Department of the Interior ................... 6 Prepared statement of ............................................................................... 10 Watson, Rear Admiral James, Deputy, Unified Area Command on the Deepwater Horizon Fire and MC 252 Oil Spill, U.S. Coast Guard .......... 90 Prepared statement of ............................................................................... 92 (III) VerDate Nov 24 2008 12:23 Aug 13, 2010 Jkt 000000 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 L:\DOCS\56675MRG.TXT Hresour1 PsN: KATHY VerDate Nov 24 2008 12:23 Aug 13, 2010 Jkt 000000 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 L:\DOCS\56675MRG.TXT Hresour1 PsN: KATHY CONTENTS Page Hearing held on Thursday, May 27, 2010 ............................................................. 139 Statement of Members: Hastings, Hon. Doc, a Representative in Congress from the State of Washington .................................................................................................... 140 Prepared statement of ............................................................................... 141 Miller, Hon. George, a Representative in Congress from the State of California, Statement submitted for the record ......................................... 270 Rahall, Hon. Nick J., II, a Representative in Congress from the State of West Virginia ............................................................................................ 139 Statement of Witnesses: Foss, Michelle Michot, Ph.D., Head, Center for Energy Economics, and Chief Energy Economist, University of Texas ............................................ 246 Prepared statement of ............................................................................... 247 Garamendi, Hon. John, a Representative in Congress from the State of California ................................................................................................... 235 Prepared statement of ............................................................................... 236 Gerard, Jack N., President and CEO, American Petroleum Institute ......... 142 Prepared statement of ............................................................................... 143 Hirshfield, Michael F., Ph.D., Senior Vice President for North America and Chief Scientist, Oceana ......................................................................... 237 Prepared statement of ............................................................................... 239 Luthi, Randall, President, National Ocean Industries Association .............. 226 Prepared statement of ............................................................................... 227 McKay, Lamar, Chairman and President, BP America, Inc. ........................ 152 Prepared statement of ............................................................................... 154 Newman, Steven L., Chief Executive Officer, Transocean, Ltd. ................... 159 Prepared statement of ............................................................................... 161 Additional materials supplied: DeGette, Hon. Diana, a Representative in Congress from the State of Colorado, Chart ‘‘Factors Contributing to Blowouts’’ submitted for the record ............................................................................................................. 272 List of documents retained in the Committee’s official files ......................... 271 (V) VerDate Nov 24 2008 12:23 Aug 13, 2010 Jkt 000000 PO 00000 Frm 00005 Fmt 5904 Sfmt 5904 L:\DOCS\56675MRG.TXT Hresour1 PsN: KATHY VerDate Nov 24 2008 12:23 Aug 13, 2010 Jkt 000000 PO 00000 Frm 00006 Fmt 5904 Sfmt 5904 L:\DOCS\56675MRG.TXT Hresour1 PsN: KATHY OVERSIGHT HEARING ON THE ‘‘OUTER CON- TINENTAL SHELF OIL AND GAS STRATEGY AND IMPLICATIONS OF THE DEEPWATER HORIZON RIG EXPLOSION’’ Wednesday and Thursday, May 26 and 27, 2010 U.S. House of Representatives Committee on Natural Resources Washington, D.C. The Committee met, pursuant to call, at 10:05 a.m. in Room 1324, Longworth House Office Building, Hon. Nick J. Rahall, II [Chairman of the Committee] presiding. Present: Representatives Rahall, Kildee, Pallone, Napolitano, Holt, Grijalva, Bordallo, Costa, Boren, Heinrich, Luja´n, Miller, Markey, DeFazio, Hinchey, Christensen, DeGette, Kind, Capps, Inslee, Baca, Herseth Sandlin, Sarbanes, Shea-Porter, Tsongas, Kratovil, Hastings, Young, Gallegly, Flake, Gohmert, Bishop, Shuster, Lamborn, Smith, Wittman, Broun, Fleming, Coffman, Chaffetz, Lummis, McClintock, and Cassidy. Also present: Representative Castor. STATEMENT OF HON. NICK J. RAHALL, II, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF WEST VIRGINIA The CHAIRMAN. The Committee on Natural Resources will come to order, please. I am going to begin with a few housekeeping chores. Pursuant to Committee Rule 4(g), opening remarks will be limited to the Chairman and the Ranking Member during today’s hearing. At this time, I ask unanimous consent that the gentlelady from Florida, Kathy Castor, be allowed to sit with the Committee today, whenever she arrives. Without objection,
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