Old Law May Be Hindering Gulf Oil Response
CNBC staff and wire reports
18 Jun 2010 12:57 PM ET
It's an arcane law called The Merchant Marine Act of 1920. But, more often you'll hear it referred to as the Jones Act. And it's no longer as antiquated as it sounds, in light of the BP disaster.
The Obama Administration has come under fire for not waiving the act, as was done during Hurricane Katrina. Critics, including Congressman Charles Djou (R-Hawaii), say it prevents foreign ships from helping in the assistance.
Many Republican members of Congress were expecting President Obama to address the Jones Act in his televised address to the nation earlier this week.
"I had hoped that he would make an announcement to waive the Jones Act, which mandates that only American ships can operate and ply in American waters," Djou said. "There's been a lot international offers of support and assistance that I think could help aggressively address and take care of this mess going on in the Gulf of Mexico."
Djou added, "Maintaining protectionist measures such as the Jones Act does not help our nation. This is something we have to focus in on here and not hew into 90-year-old anachronistic laws." (Watch more of Djou's comments in the video here.)
Coast Guard Admiral Thad Allen, who is overseeing the federal government's response to the spill, has denied any waiver for the Jones Act has been requested. And, White House spokesman Robert Gibbs said on June 10, "if there is the need for any type of waiver, that would obviously be granted. But, we've not had that problem thus far in the Gulf."
However, this is not say that the Administration is declining all offers of foreign assistance. Carol Browner, Assistant to the President for Energy and Climate Change, said "there are a number of foreign offers that we have taken advantage of, and the Coast Guard analyzes them."
Mexico, Holland, and Norway are among the countries whose offers of technology are being utilized.
These foreign technologies are largely used on U.S. ships. Foreign offers of ships are still being rejected. "The embassy got a nice letter from the administration that said, 'Thanks, but no thanks'," Dutch Consul General Geert Visser told the Houston Chronicle.
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Steffy: U.S. and BP slow to accept Dutch expertise
By LOREN STEFFY Copyright 2010 Houston Chronicle
June 8, 2010
Three days after the explosion of the Deepwater Horizon in the Gulf of Mexico, the Dutch government offered to help.
It was willing to provide ships outfitted with oil-skimming booms, and it proposed a plan for building sand barriers to protect sensitive marshlands.
The response from the Obama administration and BP, which are coordinating the cleanup: “The embassy got a nice letter from the administration that said, ‘Thanks, but no thanks,'” said Geert Visser, consul general for the Netherlands in Houston.
Now, almost seven weeks later, as the oil spewing from the battered well spreads across the Gulf and soils pristine beaches and coastline, BP and our government have reconsidered.
U.S. ships are being outfitted this week with four pairs of the skimming booms airlifted from the Netherlands and should be deployed within days. Each pair can process 5 million gallons of water a day, removing 20,000 tons of oil and sludge.
At that rate, how much more oil could have been removed from the Gulf during the past month?
The uncoordinated response to an offer of assistance has become characteristic of this disaster's response. Too often, BP and the government don't seem to know what the other is doing, and the response has seemed too slow and too confused.
Federal law has also hampered the assistance. The Jones Act, the maritime law that requires all goods be carried in U.S. waters by U.S.-flagged ships, has prevented Dutch ships with spill-fighting equipment from entering U.S. coastal areas.
“What's wrong with accepting outside help?” Visser asked. “If there's a country that's experienced with building dikes and managing water, it's the Netherlands.”
Even if, three days after the rig exploded, it seemed as if the Dutch equipment and expertise wasn't needed, wouldn't it have been better to accept it, to err on the side of having too many resources available rather than not enough?
BP has been inundated with well-intentioned cleanup suggestions, but the Dutch offer was different. It came through official channels, from a government offering to share its demonstrated expertise.
Many in the U.S., including the president, have expressed frustration with the handling of the cleanup. In the Netherlands, the response would have been different, Visser said.
There, the government owns the cleanup equipment, including the skimmers now being deployed in the Gulf.
“If there's a spill in the Netherlands, we give the oil companies 12 hours to react,” he said.
If the response is inadequate or the companies are unprepared, the government takes over and sends the companies the bill.
While the skimmers should soon be in use, the plan for building sand barriers remains more uncertain. Louisiana Gov. Bobby Jindal supports the idea, and the Coast Guard has tentatively approved the pro-ject. One of the proposals being considered was developed by the Dutch marine contractor Van Oord and Deltares, a Dutch research institute that specializes in environmental issues in deltas, coastal areas and rivers. They have a strategy to begin building 60-mile-long sand dikes within three weeks.
That proposal, like the offer for skimmers, was rebuffed but later accepted by the government. BP has begun paying about $360 million to cover the costs. Once again, though, the Jones Act may be getting in the way. American dredging companies, which lack the dike-building expertise of the Dutch, want to do the work themselves, Visser said.
“We don't want to take over, but we have the equipment,” he said.
While he battles the bureaucracy, the people of Louisiana suffer, their livelihoods in jeopardy from the onslaught of oil.
“Let's forget about politics; let's get it done,” Visser said.
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