WASHINGTON — Despite improvements put in place since the massive BP oil spill, a presidential investigating panel has concluded that the government and the oil industry still have not done enough to avert another catastrophic accident offshore.
The blowout and rig explosion last April, which killed 11 workers and released more than 200 million gallons of oil from the damaged well, have prompted changes in the oil industry and at the agency in charge of offshore drilling.
The national oil spill commission will suggest an even greater commitment and overhaul from Congress, the administration and oil and gas companies when it issues its final report today to President Obama, said an official who was briefed on the report but not authorized to speak about it publicly.
Among the commission’s recommendations:
• Increasing budgets and training for the federal agency that regulates offshore drilling.
• Increasing the liability cap for companies drilling offshore.
• Dedicating 80 percent of fines and penalties from the BP spill to environmental restoration in the Gulf.
• Lending more weight to scientific advice in government decisions about where to allow oil and gas leasing.
Many of the report’s conclusions were previewed in earlier discussions by the panel, and at least one – a suggestion that water pollution fines be used to pay for Gulf Coast restoration – has been endorsed by Obama. For that to occur, Congress would have to pass legislation.
“The improvements in the Interior Department’s regulatory capability are, we believe, relatively modest,” co-chairman William K. Reilly said during a meeting in early December in which the panel’s staff outlined its recommended reforms. “And failure to upgrade the quality of federal regulation would be a national scandal.”
The seven-member panel will recommend that Congress draft legislation to further reorganize the Interior Department, which already has adjusted its structure to separate the conflicting functions of collecting revenue from oil companies and ensuring those companies operate safely.
Commissioners also are likely to recommend that companies drilling in the United States adopt safety procedures that are common in other countries but not required in the Gulf of Mexico.
On the industry side, the panel will signal its support for an independent safety institute, similar to one created by the nuclear power industry after the 1979 Three Mile Island accident.
Both industry and government have taken numerous actions to improve safety since the Gulf incident.
BP’s CEO in late September fired the company’s executive responsible for deep-water wells like the one that blew out in the Gulf of Mexico. The company also announced a new unit to police safety practices that would have the authority to intervene in all of BP’s technical operations.
Also, the federal government swiftly imposed new regulations on the offshore drilling industry following the spill and imposed a moratorium on deep-water drilling that it later lifted.
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