Posted by: reefrescue | July 28, 2010

Criminal probe of oil spill to focus on ties to regulators

By Jerry Markon

Washington Post Staff Writer
Wednesday, July 28, 2010

A team of federal investigators known as the “BP squad” is assembling in New Orleans to conduct a wide-ranging criminal probe that will focus on at least three companies and examine whether their cozy relations with federal regulators contributed to the oil disaster in the Gulf of Mexico, according to law enforcement and other sources.

The squad at the FBI offices includes investigators from the Environmental Protection Agency, the U.S. Coast Guard and other federal agencies, the sources said. In addition to BP, the firms at the center of the inquiry are Transocean, which leased the Deepwater Horizon rig to BP, and engineering giant Halliburton, which had finished cementing the well only 20 hours before the rig exploded April 20, sources said.

While it was known that investigators are examining potential violations of environmental laws, it is now clear that they are also looking into whether company officials made false statements to regulators, obstructed justice or falsified test results for devices such as the rig’s failed blowout preventer. It is unclear whether any such evidence has surfaced.

One emerging line of inquiry, sources said, is whether inspectors for the Minerals Management Service, the federal agency charged with regulating the oil industry — which is itself investigating the disaster — went easy on the companies in exchange for money or other inducements. A series of federal audits has documented the MMS’s close relationship with the industry.

“The net is wide,” said one federal official who spoke on the condition of anonymity because he was not authorized to speak publicly.

 Read more: http://www.washingtonpost.com/wp-dyn/content/article/2010/07/27/AR2010072706052.html

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