Wednesday, July 21, 2010

Day Two of BP (NYSE:BP) Oil Spill Hearing: Proof of Negligence

Up to this point, there has been many accusations and speculation that BP (NYSE:BP) was negligent in their operations and safety at the Macondo Well. The proof came from an internal report that was brought to an investigative hearing in Kenner, Louisiana.

Two days prior to the massive explosion of the Deepwater Horizon, BP was told that there may be a problem with natural gas leaking from the Macondo Well. The warning came from a contractor on the rig employed by Halliburton. A BP well site leader Ronald Sepulvado, told the panel that he had received a different report on April 15th but not on April 18th, which warned of gas flow risks.

He also stated the workers became aware of a leak in the hydraulic system, which control the blowout preventer. In an emergency, the blowout preventer is responsible for shutting down a well. On the Deepwater Horizon Rig, the blowout preventer failed at shutting down the well.

Sepulvado continued saying, he was aware of an audit in April that showed the Deepwater Horizon's blowout preventer was well past due for a major inspection. He raised concerns to Transocean about maintenance of the blowout preventer, saying some equipment pieces were out of service for long periods of time. Transocean's response to him was they, "always told me they didn't have the parts."

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