English subtitles for clip: File:6-16-10- White House Press Briefing.webm

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Mr. Gibbs:
So we're going to do this in
a little bit different order.

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We're going to start today with
Treasury Secretary Tim Geithner

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and Under Secretary for
Terrorism and Financial

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Intelligence Stuart Levey to
announce a new round of Iran

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sanctions and designations.

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And for any of those that
are interested, Stuart,

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and Bob Einhorn from
the State Department,

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will be doing a pen and pad
briefing on this later this

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afternoon at the Treasury
Department. Mr. Secretary.

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Secretary Geithner:
Thanks, Robert.

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Over the past year, President
Obama has pursued a broad

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international strategy to
address the world's concerns

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over Iran's nuclear program.

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A critical step in that strategy
came last week when the United

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Nations Security Council
adopted the toughest sanctions

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ever imposed on the
Iranian government.

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Today, the United States is
taking our first steps to

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implement and build
on that resolution.

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We are adding to our list of
sanction entities a number of

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institutions and individuals who
are helping Iran finance nuclear

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and missile programs and to
evade international sanctions.

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Our actions today are designed
to deter other governments and

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foreign financial institutions
from dealing with these entities

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and thereby supporting
Iran's illicit activities.

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Let me briefly describe
each of these actions.

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First, we are designating
Iran's Post Bank for its

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support of proliferation activities.

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This brings the number
of Iranian-owned banks

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on our list to 16.

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Second, we are adding five front
companies and more than 90 ship

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names that Iran's national
maritime carrier has been

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using to try to evade sanctions.

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Third, we are adding
two individuals and

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four entities that are part
of Iran's Revolutionary Guard,

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which as you know, plays a key
role in Iran's missile programs

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and its support for terrorism.

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Fourth, we are adding two
individuals and two entities

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that are actively
involved in Iran's

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nuclear or missile programs.

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And finally, we are identifying
22 petroleum, energy,

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and insurance companies, located
inside and outside Iran,

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which are owned or controlled
by the Iranian government.

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Now, shortly, Stuart Levey,
who is Treasury's Under

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Secretary for Terrorism
and Financial Intelligence,

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is going to walk you through
the details of these actions.

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Stuart Levey, as you know, has
been the chief architect of our

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strategy to impose growing
financial costs on Iran for its

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continued defiance, and he has
played a major leadership role

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on this issue internationally.

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In the coming weeks, we will
continue to increase the

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financial pressure on Iran.

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We will continue to
target Iran's support

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for terrorist organizations.

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We will continue to focus on
Iran's Revolutionary Guard.

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We will continue to expose
Iran's efforts to evade

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international sanctions.

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Now, to be truly effective in
ending Iran's proliferation

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activities and Iran's
support for terrorism,

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we need to have in
place a concerted

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international approach.

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This is not something the
United States can do alone.

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We need other countries
to move with us.

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So alongside our efforts in
the U.N. to build international

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support for sanctions, we have
been working behind the scenes

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building support among
finance ministries for

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additional actions to prevent
abuse of the global financial

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system by Iran.

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We expect to see additional
actions announced by other

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governments soon.

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The types of steps we
are taking today have

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been remarkably effective.

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When major financial
institutions,

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companies around the world,
discover they are actually

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working with Iranian companies
that support Iran's nuclear or

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missile programs, they realize
it's not worth the risk;

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they cut off their business.

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And over the years, these steps
have made a major difference in

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limiting Iran's ability to use
the global financial system to

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finance, to pursue
illicit activities.

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We made important progress,
but we cannot stop here.

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Iran will never cease looking
for ways to evade our sanctions,

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so our efforts must be
ongoing and unrelenting.

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And we will keep working on
ways to intensify financial

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pressure on Iran.

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Thank you. I'm going
to give you Stuart.

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Under Secretary Levey:
Thank you, Mr. Secretary.

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As Secretary Geithner said,
we're taking a series of steps

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today to impose additional
consequences on Iran for its

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continued failure to meet its
international obligations.

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First, we're sanctioning
an additional Iranian

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bank, Post Bank.

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At one time, Post Bank's
business was conducted

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almost entirely within Iran.

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But when some of Iran's largest
banks were exposed for financing

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proliferation, Iran began to
use Post Bank to facilitate

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international trade.

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In fact, Post Bank stepped
into the shoes of Bank Sepah,

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which is under United
Nations sanctions,

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to carry out Bank
Sepah's transactions

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and hide its identity.

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International banks that
would never deal with Bank

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Sepah have been handling these
transactions that they think

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are really for Post Bank.

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Second, we're taking additional
action today against Iran's

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national maritime
carrier, or IRISL.

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Since we first
sanctioned IRISL in 2008,

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it has desperately attempted to
evade those sanctions -- setting

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up new front companies, renaming
and reflagging and even

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repainting its vessels to
hide their true ownership.

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Despite its deceptive maneuvers,
IRISL has had to struggle to

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obtain insurance and other
services that it needs.

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It has also been
caught violating U.N.

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Security Council sanctions.

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Our actions today expose IRISL's
deception and make it more

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difficult for IRISL to carry
out illegal activities.

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Third, we're taking further
action against the IRGC,

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or Islamic Revolutionary
Guard Corps.

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The IRGC, as the Secretary said,
plays a key role in Iran's

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missile program and its
support for terrorism,

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and it has also taken over broad
portions of the Iranian economy

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to the detriment of
the Iranian people.

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With today's designations,
we have now sanctions 26

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entities and individuals
connected to the IRGC,

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and we will continue to do so.

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No IRGC entity should have
any place in the world's

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legitimate financial system.

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Fourth, we're sanctioning two
individuals and two entities for

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proliferation, including
a key Iranian broker used

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to procure a variety of
nuclear-related equipment.

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And finally, we're identifying
22 petroleum, energy,

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and insurance companies that
are owned and controlled by

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the government of Iran.

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Many of them, though -- 17, in
fact -- are located outside of

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Iran and may not be easily
identifiable as being Iranian.

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Americans have long been
forbidden from doing business

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with Iranian entities, but
increasingly companies around

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the world are deciding not to do
business with the government of

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Iran because of its wide range
of illicit conduct, and because,

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as President Obama
said last week,

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it is a government that has
brutally suppressed dissent and

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murdered the innocent.

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The United Nations has also
highlighted proliferation

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concerns surrounding
Iran's energy sector,

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and all companies must be
conscious of the implications

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of any trade that they conduct
with Iran's energy companies.

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We know that officials in Iran
have been anxious about this

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new round of sanctions.

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If the Iranian government
holds true to form,

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it will scramble to
identify work-arounds,

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hiding behind front companies,
doctoring wire transfers,

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falsifying shipping documents.

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We will continue to expose this
deception, as we are today,

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and thereby reinforce the very
reasons why the private sector

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around the world is
increasingly shunning Iran.

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We will also work to ensure
that international sanctions

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are enforced.

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In this regard, the State
Department has dedicated a

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senior official, Bob Einhorn, to
ensure that we accomplish this

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in cooperation with our friends
and partners around the world.

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We are very fortunate to have
someone of Bob's stature and

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experience working
on this issue.

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The overall result of these
efforts is that Iran's choice

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will be increasingly clear --
to choose the path offered by

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President Obama and the
international community,

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or to remain on a course that
leads to further isolation.

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Thank you very much.

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Mr. Gibbs:
Stuart has got time for a couple
of questions on Iran sanctions.

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The Press:
Sir, the general sense in some
-- in terms of the government of

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Iran is that these sanctions
are targeting the people.

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What assurances can you give the
people of Iran that what you're

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rolling out today and what
you've done at the U.N.

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and other places is not
targeting the people?

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And secondly, the Iranians knew
that this was probably coming --

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they knew that the U.N.

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sanctions were coming, so they
probably have taken steps.

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What are you doing in
response to those steps?

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Does it make your job that much
more difficult to make sure

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you're targeting the
people you want to target,

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as opposed to others?

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Under Secretary Levey:
Excellent question.

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In fact, you're right; we
have no problem or dispute

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with the people of Iran.

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Quite the contrary.

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It's the government of Iran and
the decisions that they've made

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that we have a problem with.

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And we do try to
focus our sanctions

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on the decision-makers.

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We do this in two ways -- one by
focusing on those engaged in the

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actual illicit activity, those
-- part of the nuclear program,

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the missile program,
support for terrorism.

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And secondly, our focus on the
Revolutionary Guard I think is

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quite consistent with this.

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The Revolutionary
Guard, as you may know,

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not only is engaged
in illicit activity,

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but it's taking economic
opportunities from the

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people of Iran.

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We think that by focusing
attention on the Revolutionary

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Guard, as we did at
the United Nations,

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and as we have both unilaterally
and with our partners around the

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world, that we're sending
exactly the right message.

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We're going after the people
who are oppressing the people

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of Iran, oppressing them
politically and economically.

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The Press:
And the second question,

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they have obviously known
that this was coming.

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Under Secretary Levey:
Right.

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Well, in fact,
they undoubtedly did.

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The whole world
knew it was coming.

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The beauty of the kinds of
measures that we've been taking

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is that when Iran engages in
evasive conduct and deceptive

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conduct, as they
undoubtedly will,

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we use that our advantage by
exposing the evasive conduct,

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the deceptive conduct, and then
making that public for

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the whole world to see.

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When we do that, the private
sector -- it reinforces this

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dynamic where the private sector
already doesn't want to do

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business with Iran.

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They then see that Iran is
taking action that has a risk

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of bringing them into illicit
activity and it reinforces this

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dynamic where they
continue to shun Iran.

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So by structuring the
sanctions the way we have,

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we think we can use
their countermeasures

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to our advantage.

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The Press:
I'm wondering how -- the
Europeans tomorrow are going

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to announce something a

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little more -- that
goes beyond the U.N.

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Can you talk about how
this relates to that,

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whether we're going
to adopt some of the

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measures they're doing?

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And to what degree does this
push Iran closer to China,

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which has been a straggler
in terms of sanctions?

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Under Secretary Levey:
Well, I don't want to
comment exactly on what

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the Europeans might do tomorrow,
but you're absolutely right that

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they're also considering
measures that they can take

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to implement and build
upon the resolution.

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We're actually partnering
with them quite closely.

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And it was part of the overall
effort from the beginning that

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we would use this Security
Council resolution -- which

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as you know, already sits on
top of three prior sanctions

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resolutions, so we have now four
sanctions resolutions against

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Iran -- and with other
countries around the world,

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we will take measures that
build upon the resolution,

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that are consistent
with the resolution,

243
00:11:51,066 --> 00:11:53,496
and that draw upon those
provisions of the resolution

244
00:11:53,500 --> 00:11:55,700
which are specifically intended
to give countries the

245
00:11:55,700 --> 00:11:59,400
authority to do this.

246
00:11:59,400 --> 00:12:06,130
In terms of China, as is
obvious, China, of course,

247
00:12:06,133 --> 00:12:07,963
not only is a U.N.

248
00:12:07,967 --> 00:12:10,467
Security Council permanent
member but also voted

249
00:12:10,467 --> 00:12:11,667
for this resolution.

250
00:12:11,667 --> 00:12:15,767
And there are significant
obligations placed on China in

251
00:12:15,767 --> 00:12:18,137
this resolution, which we have
every reason to believe that

252
00:12:18,133 --> 00:12:20,763
they will faithfully execute.

253
00:12:20,767 --> 00:12:23,897
The Press:
Stuart, as you know,
Congress is talking about its

254
00:12:23,900 --> 00:12:26,470
own unilateral sanctions package
that would target countries that

255
00:12:26,467 --> 00:12:28,137
do business with Iran.

256
00:12:28,133 --> 00:12:30,633
How are you guys doing on
getting them to sort of

257
00:12:30,633 --> 00:12:33,203
compromise on that so that there
would be a waiver for countries

258
00:12:33,200 --> 00:12:36,370
like China and Russia that
help us, for instance?

259
00:12:36,367 --> 00:12:39,097
Secretary Levey:
Well, we are working closely with the Congress.

260
00:12:39,100 --> 00:12:41,270
We share the same goal
as the Congress does,

261
00:12:41,266 --> 00:12:44,836
which is to have an effective
set of tools to bring pressure

262
00:12:44,834 --> 00:12:46,804
on Iran for its
illicit activities.

263
00:12:46,800 --> 00:12:49,970
We are in close consultation
with them the try to have a bill

264
00:12:49,967 --> 00:12:53,537
that will be as
effective as possible.

265
00:12:53,533 --> 00:12:56,563
It's still a work in progress,
but it's something that we're in

266
00:12:56,567 --> 00:12:59,037
very close consultations with
the Hill on a regular basis.

267
00:12:59,033 --> 00:13:01,163
The Press:
But you are pushing on a waiver?

268
00:13:01,166 --> 00:13:03,566
Under Secretary Levey:
We're working with
them on the bill.

269
00:13:03,567 --> 00:13:06,267
Mr. Gibbs:
One more here and
then we'll let Stuart go.

270
00:13:06,266 --> 00:13:08,166
The Press:
There were two
countries at the U.N.

271
00:13:08,166 --> 00:13:11,466
Security Council that voted
against the resolution.

272
00:13:11,467 --> 00:13:15,967
My question is has your
administration talked to the

273
00:13:15,967 --> 00:13:18,337
Turkish administration
and Brazil,

274
00:13:18,333 --> 00:13:26,163
and how much cooperation
so far you have received?

275
00:13:26,166 --> 00:13:27,866
Has the Turkish administration
stated that they are going to

276
00:13:27,867 --> 00:13:30,367
comply with the
sanctions package?

277
00:13:30,367 --> 00:13:32,997
Under Secretary Levey:
Well, again, as not only

278
00:13:33,000 --> 00:13:35,870
Security Council members but
also members of the

279
00:13:35,867 --> 00:13:39,067
United Nations, this is
a binding resolution.

280
00:13:39,066 --> 00:13:41,336
We have every reason to believe
that both Turkey and Brazil

281
00:13:41,333 --> 00:13:44,603
will, in spite of their
vote on the resolution,

282
00:13:44,600 --> 00:13:47,470
will comply with the
resolution faithfully.

283
00:13:47,467 --> 00:13:48,167
Mr. Gibbs:
Thank you, sir.

284
00:13:48,166 --> 00:13:49,096
Under Secretary Levey:
Thank you.

285
00:13:49,100 --> 00:14:02,530
Mr. Gibbs:
All right, now we've
got more participants today.

286
00:14:02,533 --> 00:14:07,363
I'm bringing Admiral Allen and
Carol Browner in -- come on up,

287
00:14:07,367 --> 00:14:12,837
guys, you're the next contestant
-- to help us go through --

288
00:14:12,834 --> 00:14:15,304
obviously Admiral Allen -- if
you have operational questions

289
00:14:15,300 --> 00:14:17,830
about what's going
on in the Gulf.

290
00:14:17,834 --> 00:14:24,364
Carol was involved in the
meetings that were had today,

291
00:14:24,367 --> 00:14:28,367
so she and I can answer
questions about that.

292
00:14:28,367 --> 00:14:30,997
So, Mr. Feller, take us away.

293
00:14:31,000 --> 00:14:31,630
The Press:
Okay, thanks.

294
00:14:31,633 --> 00:14:34,303
Some questions about the
fund, oil spill fund.

295
00:14:34,300 --> 00:14:37,070
Was BP ordered to do this?

296
00:14:37,066 --> 00:14:38,996
Did they do this on its own?

297
00:14:39,000 --> 00:14:41,930
How exactly did
that come together?

298
00:14:41,934 --> 00:14:43,964
Ms. Browner:
We reached an agreement
with BP that they will

299
00:14:43,967 --> 00:14:48,867
establish an independent claims
facility and an escrow account.

300
00:14:48,867 --> 00:14:50,937
And it was in the course of
discussions that they've

301
00:14:50,934 --> 00:14:53,764
agreed to do all of this.

302
00:14:53,767 --> 00:14:55,667
The Press:
So is it your feeling that
the company would have

303
00:14:55,667 --> 00:14:57,497
done this on its own?

304
00:14:57,500 --> 00:14:58,670
Ms. Browner:
No.

305
00:14:58,667 --> 00:15:00,497
The Press:
So, okay, this
is essentially a White

306
00:15:00,500 --> 00:15:02,170
House-ordered agreement?

307
00:15:02,166 --> 00:15:04,736
Ms. Browner:
It was a White
House-driven agreement.

308
00:15:04,734 --> 00:15:09,134
They're now -- they will agree
to set up this facility where

309
00:15:09,133 --> 00:15:13,833
claims can be expeditiously
reviewed and decisions made

310
00:15:13,834 --> 00:15:15,504
about how to proceed.

311
00:15:15,500 --> 00:15:18,930
They'll set up an escrow
account of $20 billion.

312
00:15:18,934 --> 00:15:21,604
They will also
provide assets, U.S.

313
00:15:21,600 --> 00:15:24,230
assets of $20 billion
to back that up.

314
00:15:24,233 --> 00:15:25,433
Mr. Gibbs:
I'll say this, Ben.

315
00:15:25,433 --> 00:15:29,933
Obviously the White House and
other agencies of the government

316
00:15:29,934 --> 00:15:31,864
have been working over
the past several days,

317
00:15:31,867 --> 00:15:33,997
and you heard the President
speak last night,

318
00:15:34,000 --> 00:15:40,400
about -- and others in the
administration speak yesterday

319
00:15:40,400 --> 00:15:44,730
-- about directing them
to set up, as Carol said,

320
00:15:44,734 --> 00:15:48,534
an escrow account that would be
independently administered

321
00:15:48,533 --> 00:15:51,103
for speedy claims.

322
00:15:51,100 --> 00:15:53,430
The Press:
Is BP the only
company paying in?

323
00:15:53,433 --> 00:15:56,363
And if so, what about the other
companies that were involved in

324
00:15:56,367 --> 00:15:59,337
some way that may have an
interest in the well or the rig

325
00:15:59,333 --> 00:16:01,333
-- are they liable at all?

326
00:16:01,333 --> 00:16:03,563
Ms. Browner:
Well, BP is the
responsible party.

327
00:16:03,567 --> 00:16:05,437
There may be other
responsible parties.

328
00:16:05,433 --> 00:16:08,763
Obviously BP will be working
to -- with those companies in

329
00:16:08,767 --> 00:16:11,697
whatever way is appropriate
to secure funds.

330
00:16:11,700 --> 00:16:15,830
But what we have is an agreement
for $20 billion in this fund.

331
00:16:15,834 --> 00:16:18,534
It is not a floor,
it is not a ceiling,

332
00:16:18,533 --> 00:16:20,463
but what this gives us is the
assurances so that we can make

333
00:16:20,467 --> 00:16:24,637
sure that the people, the small
businesses that have been

334
00:16:24,633 --> 00:16:27,303
impacted can get their claims
paid in a timely manner.

335
00:16:27,300 --> 00:16:29,630
It sets up a process.

336
00:16:29,633 --> 00:16:32,833
There will be
Mr. Feinberg and then a

337
00:16:32,834 --> 00:16:35,064
three-person review panel.

338
00:16:35,066 --> 00:16:37,636
All of that can be done
in an expedited manner.

339
00:16:37,633 --> 00:16:39,703
At which point the individuals'
claims have been met,

340
00:16:39,700 --> 00:16:42,000
if the individual is
not happy at that point,

341
00:16:42,000 --> 00:16:44,700
they retain all of
their legal rights.

342
00:16:44,700 --> 00:16:48,730
BP, however, can only seek
an appeal of Mr. Feinberg's

343
00:16:48,734 --> 00:16:52,764
determination if the claim
is in excess of $500,000

344
00:16:52,767 --> 00:16:57,297
that's been granted, or if
Feinberg certifies a

345
00:16:57,300 --> 00:16:59,870
appeal is allowable.

346
00:16:59,867 --> 00:17:00,797
The Press:
Why $20 billion?

347
00:17:00,800 --> 00:17:02,670
Is that the figure that the
White House thinks is enough

348
00:17:02,667 --> 00:17:04,267
to cover all the damage?

349
00:17:04,266 --> 00:17:06,336
Ms. Browner:
Again, it's not a floor
or a ceiling, right?

350
00:17:06,333 --> 00:17:07,603
The Press:
But why the figure?

351
00:17:07,600 --> 00:17:09,300
Ms. Browner:
Because what we
wanted to make sure that there

352
00:17:09,300 --> 00:17:12,200
were adequate resources there
for people to know that they

353
00:17:12,200 --> 00:17:13,800
could have their claims met.

354
00:17:13,800 --> 00:17:15,930
There were also
claims -- the states,

355
00:17:15,934 --> 00:17:17,334
local governments
may have claims,

356
00:17:17,333 --> 00:17:19,503
and so we wanted to start this
with a fund that would be

357
00:17:19,500 --> 00:17:22,130
adequate to meet all
of those expectations.

358
00:17:22,133 --> 00:17:24,363
Mr. Gibbs:
And just to reiterate,

359
00:17:24,367 --> 00:17:28,367
this does not in any way limit
or cap the economic damages that

360
00:17:28,367 --> 00:17:30,837
BP may be responsible for.

361
00:17:30,834 --> 00:17:31,904
Ms. Browner:
Or natural resource damages.

362
00:17:31,900 --> 00:17:33,430
Mr. Gibbs:
Or natural resource damages.

363
00:17:33,433 --> 00:17:36,903
So it is not a floor, not a cap.

364
00:17:36,900 --> 00:17:39,700
It does not limit in any
way their responsibility.

365
00:17:39,700 --> 00:17:40,630
The Press:
Just one last question.

366
00:17:40,633 --> 00:17:42,963
We didn't hear from
Mr. Hayward outside.

367
00:17:42,967 --> 00:17:46,337
Did the President have anything
specifically to say to him?

368
00:17:46,333 --> 00:17:50,063
Mr. Gibbs:
The President spent
20 or so minutes at the very

369
00:17:50,066 --> 00:17:56,036
beginning of these meetings --
for several hours our group was

370
00:17:56,033 --> 00:18:00,503
in discussing the details
of the framework agreement,

371
00:18:00,500 --> 00:18:07,570
and the President spent 25
minutes with the chair alone in

372
00:18:07,567 --> 00:18:10,037
the Oval Office.

373
00:18:10,033 --> 00:18:12,233
And I think you heard the
President speak directly

374
00:18:12,233 --> 00:18:14,333
about that.

375
00:18:14,333 --> 00:18:17,503
The comments that he made at the
opening of the meeting and to

376
00:18:17,500 --> 00:18:19,900
the chair were not directed at
any one person but directed at

377
00:18:19,900 --> 00:18:26,430
the entire company, and
underscore the responsibilities

378
00:18:26,433 --> 00:18:28,303
that they have as the
responsible party

379
00:18:28,300 --> 00:18:29,630
for this disaster.

380
00:18:29,633 --> 00:18:32,333
Do you have anything you
want to -- yes, ma'am.

381
00:18:32,333 --> 00:18:34,433
The Press:
Can you bring us behind
the scenes a little bit

382
00:18:34,433 --> 00:18:35,363
for the meeting?

383
00:18:35,367 --> 00:18:37,067
It was supposed to
last a short time;

384
00:18:37,066 --> 00:18:40,396
it lasted several hours longer
than it was on the schedule.

385
00:18:40,400 --> 00:18:41,800
And I'm wondering if you can
tell me a little bit about how

386
00:18:41,800 --> 00:18:46,970
it played out and whether the
apology that was made was

387
00:18:46,967 --> 00:18:49,767
something that you
suggested that they do.

388
00:18:49,767 --> 00:18:53,797
Ms. Browner:
They actually began
the meeting with the President

389
00:18:53,800 --> 00:18:57,930
in the Roosevelt Room with an
apology from the chairman.

390
00:18:57,934 --> 00:19:00,504
It was not something
we asked for.

391
00:19:00,500 --> 00:19:03,770
The meeting then turned to
the President laying out the

392
00:19:03,767 --> 00:19:06,067
concerns we had, the things
that we thought were very,

393
00:19:06,066 --> 00:19:07,496
very important to be addressed.

394
00:19:07,500 --> 00:19:10,270
We talked about the
containment that's ongoing.

395
00:19:10,266 --> 00:19:13,496
He talked about the fact that
every time he goes down to the

396
00:19:13,500 --> 00:19:16,130
Gulf he visits with
these individuals,

397
00:19:16,133 --> 00:19:19,163
he visits with small businesses
who are feeling the impacts,

398
00:19:19,166 --> 00:19:22,466
the need to get that addressed.

399
00:19:22,467 --> 00:19:26,367
And the best way to move forward
would be through a independent

400
00:19:26,367 --> 00:19:29,237
process, not run by the
government, not run by BP,

401
00:19:29,233 --> 00:19:32,603
and an escrow account to
ensure adequate funds

402
00:19:32,600 --> 00:19:34,570
to meet the needs.

403
00:19:34,567 --> 00:19:37,337
And again, if they're not
adequate, it's not a floor,

404
00:19:37,333 --> 00:19:38,303
it's not a ceiling.

405
00:19:38,300 --> 00:19:40,270
There will be --
BP remains liable.

406
00:19:40,266 --> 00:19:42,696
They remain liable for
everything they were liable from

407
00:19:42,700 --> 00:19:45,630
the beginning -- which is they
remain liable for the cleanup

408
00:19:45,633 --> 00:19:48,833
costs, and now what we have
is this fund to honor

409
00:19:48,834 --> 00:19:51,534
the economic costs.

410
00:19:51,533 --> 00:19:55,033
The Press:
And was the dividend something that you pressed them on?

411
00:19:55,033 --> 00:19:56,633
Ms. Browner:
Well, I mean, the
President has said publicly,

412
00:19:56,633 --> 00:19:58,863
going back almost
two weeks ago now,

413
00:19:58,867 --> 00:20:01,097
that he understood they might
have legal obligations,

414
00:20:01,100 --> 00:20:03,870
but he didn't want to be in a
situation where the people of

415
00:20:03,867 --> 00:20:07,467
the Gulf of Mexico weren't
getting their needs and their

416
00:20:07,467 --> 00:20:10,467
claims honored and dividends
were moving forward.

417
00:20:10,467 --> 00:20:13,837
And so they agreed today not to
proceed with the final

418
00:20:13,834 --> 00:20:15,404
dividends of this year.

419
00:20:15,400 --> 00:20:16,700
The Press:
So what was the
atmosphere of the meeting?

420
00:20:16,700 --> 00:20:17,970
Why did it go on longer?

421
00:20:17,967 --> 00:20:20,037
What were the things --
there must have been

422
00:20:20,033 --> 00:20:21,033
sticking points that --

423
00:20:21,033 --> 00:20:21,803
Ms. Browner:
There were sticking points.

424
00:20:21,800 --> 00:20:23,030
We did have to take
breaks at times.

425
00:20:23,033 --> 00:20:24,663
And we had a number of people.

426
00:20:24,667 --> 00:20:27,537
They had -- there were six
people I think representing BP,

427
00:20:27,533 --> 00:20:30,533
and we had in the room
maybe six or seven.

428
00:20:30,533 --> 00:20:32,903
And there were -- at times, we
needed to -- each side wanted to

429
00:20:32,900 --> 00:20:34,300
just talk among themselves.

430
00:20:34,300 --> 00:20:38,730
We did take a break at one point
to inform the President of the

431
00:20:38,734 --> 00:20:43,004
state of discussions
and to seek his counsel.

432
00:20:43,000 --> 00:20:46,600
And I guess from the outside it
seems like it was a long time.

433
00:20:46,600 --> 00:20:49,400
It was a pretty busy time, but
there were breaks -- not for

434
00:20:49,400 --> 00:20:52,730
lunch or anything like that, but
for conversation among each of

435
00:20:52,734 --> 00:20:54,934
the parties alone.

436
00:20:54,934 --> 00:21:00,904
The Press:
Quick follow-up -- did the President accept the apology?

437
00:21:00,900 --> 00:21:02,430
Mr. Gibbs:
I assume so, yes.

438
00:21:02,433 --> 00:21:04,463
The Press:
Can you tell us more
about the sticking points?

439
00:21:04,467 --> 00:21:09,337
What exactly were
those sticking points?

440
00:21:09,333 --> 00:21:10,663
Mr. Gibbs:
To be honest with you,

441
00:21:10,667 --> 00:21:13,637
I think we'll be happy to
get into what was agreed to.

442
00:21:13,633 --> 00:21:16,533
The Press:
So you can't tell us what
it is that you sort of

443
00:21:16,533 --> 00:21:17,733
bumped heads over?

444
00:21:17,734 --> 00:21:18,934
Ms. Browner:
We've reached an agreement.

445
00:21:18,934 --> 00:21:20,634
It's a really important
agreement for the people

446
00:21:20,633 --> 00:21:22,363
of the Gulf of Mexico.

447
00:21:22,367 --> 00:21:25,937
It gives the individuals and it
gives the small businesses some

448
00:21:25,934 --> 00:21:27,764
certainty that their claims
are going to be handled in an

449
00:21:27,767 --> 00:21:28,867
expedited manner.

450
00:21:28,867 --> 00:21:32,537
And I think this is a very
positive step forward

451
00:21:32,533 --> 00:21:34,703
in what has been a very
difficult situation.

452
00:21:34,700 --> 00:21:38,470
The Press:
The $100 million fund
for unemployed --

453
00:21:38,467 --> 00:21:41,567
$100 million, right?

454
00:21:41,567 --> 00:21:42,797
Was that suggested
by the White House,

455
00:21:42,800 --> 00:21:44,230
or something that
they volunteered?

456
00:21:44,233 --> 00:21:46,303
Ms. Browner:
No, that was suggested
by the White House.

457
00:21:46,300 --> 00:21:50,070
We are concerned, and we welcome
the fact that they are making

458
00:21:50,066 --> 00:21:52,196
a voluntary contribution,
$100 million,

459
00:21:52,200 --> 00:21:58,900
to a foundation for unemployed
rig workers as a result of the

460
00:21:58,900 --> 00:22:02,000
changes in the situation
in the Gulf of Mexico.

461
00:22:02,000 --> 00:22:05,470
And you should also know, we
are continuing to pursue some

462
00:22:05,467 --> 00:22:09,837
legislative fixes that would
allow individuals to apply for

463
00:22:09,834 --> 00:22:11,734
unemployment insurance.

464
00:22:11,734 --> 00:22:13,564
The Press:
Can I follow on that?

465
00:22:13,567 --> 00:22:14,767
Mr. Gibbs:
We're going to make
our way our rounds.

466
00:22:14,767 --> 00:22:16,437
The Press:
Can you -- just one
more thing on sort of

467
00:22:16,433 --> 00:22:17,863
the tone of this meeting.

468
00:22:17,867 --> 00:22:23,037
As these various things were
being brought up -- the $100

469
00:22:23,033 --> 00:22:27,203
million, the $20 billion
-- what was the sense?

470
00:22:27,200 --> 00:22:29,030
I mean, what were they doing?

471
00:22:29,033 --> 00:22:30,233
Were they pushing back?

472
00:22:30,233 --> 00:22:32,963
Did they -- can you give us
some color as to how

473
00:22:32,967 --> 00:22:34,267
they were reacting?

474
00:22:34,266 --> 00:22:35,966
Ms. Browner:
Negotiations are negotiations.

475
00:22:35,967 --> 00:22:37,897
People have ideas; they put them
forward; they discuss them;

476
00:22:37,900 --> 00:22:39,370
they decide how to proceed.

477
00:22:39,367 --> 00:22:41,437
But we were very clear from the
beginning -- the President was

478
00:22:41,433 --> 00:22:45,163
clear from the beginning that
what we needed was some sort of

479
00:22:45,166 --> 00:22:47,366
independent claims process;
we needed an escrow account.

480
00:22:47,367 --> 00:22:50,497
And we stayed focused on
achieving the President's

481
00:22:50,500 --> 00:22:51,830
goals for the meeting.

482
00:22:51,834 --> 00:22:52,564
The Press:
And one final thing.

483
00:22:52,567 --> 00:22:54,997
The $20 billion fund,
when was that agreed to?

484
00:22:55,000 --> 00:22:57,330
Was that yesterday and
then just finalized today?

485
00:22:57,333 --> 00:23:00,063
Ms. Browner:
It was agreed to today.

486
00:23:00,066 --> 00:23:00,896
The Press:
Two questions.

487
00:23:00,900 --> 00:23:03,330
The first is, it took a long
time for this meeting

488
00:23:03,333 --> 00:23:05,303
to come to fruition.

489
00:23:05,300 --> 00:23:08,170
I mean, the President obviously
almost waited two months before

490
00:23:08,166 --> 00:23:09,236
he saw Mr. Hayward face to face.

491
00:23:09,233 --> 00:23:11,203
Going forward, do you expect to
have continued meetings

492
00:23:11,200 --> 00:23:11,870
at this level?

493
00:23:11,867 --> 00:23:13,867
Or is this it?

494
00:23:13,867 --> 00:23:19,397
Mr. Gibbs:
The President will
meet at -- meet with whomever he

495
00:23:19,400 --> 00:23:22,100
needs to meet with, whenever.

496
00:23:22,100 --> 00:23:26,900
Admiral Allen is in touch with
BP, others are in touch with BP,

497
00:23:26,900 --> 00:23:29,000
and we have been throughout
this process and we will

498
00:23:29,000 --> 00:23:30,130
continue to be.

499
00:23:30,133 --> 00:23:32,333
The Press:
But at this level, I mean do you expect this to happen again,

500
00:23:32,333 --> 00:23:34,163
or is it not --

501
00:23:34,166 --> 00:23:36,666
Mr. Gibbs:
Again, if more
meetings are needed,

502
00:23:36,667 --> 00:23:38,537
more meetings will be had.

503
00:23:38,533 --> 00:23:40,263
The Press:
Going back to what
the President said yesterday --

504
00:23:40,266 --> 00:23:43,336
this is probably more for
Admiral Allen -- the President

505
00:23:43,333 --> 00:23:44,863
said yesterday that if
something isn't working,

506
00:23:44,867 --> 00:23:47,367
we want to hear about it; if
there are problems on the

507
00:23:47,367 --> 00:23:48,597
ground, we will fix them.

508
00:23:48,600 --> 00:23:51,670
Are you confident that local
authorities have the ability to

509
00:23:51,667 --> 00:23:53,167
communicate to the
federal government when

510
00:23:53,166 --> 00:23:54,196
there are problems?

511
00:23:54,200 --> 00:23:58,300
Because we have been reporting
for a good deal on the Gulf and

512
00:23:58,300 --> 00:24:01,330
it seems like a lot of local
officials feel like they are

513
00:24:01,333 --> 00:24:03,503
having to take steps on their
own and kind of deal with the

514
00:24:03,500 --> 00:24:05,500
problems as they come up, as
opposed to waiting for the

515
00:24:05,500 --> 00:24:06,930
federal government.

516
00:24:06,934 --> 00:24:08,964
Admiral Allen:
No, there's a conduit into our incident commanders.

517
00:24:08,967 --> 00:24:11,437
But what we did do after the
visit down there -- and I talked

518
00:24:11,433 --> 00:24:13,463
to the President about this
yesterday -- we established

519
00:24:13,467 --> 00:24:16,237
specific deputies for the
incident command post in Mobile

520
00:24:16,233 --> 00:24:19,303
for Mississippi,
Alabama and Florida.

521
00:24:19,300 --> 00:24:21,930
We also guaranteed Governor
Crist we'd put an incident

522
00:24:21,934 --> 00:24:23,904
management team -- this is a
group of Coast Guard folks --

523
00:24:23,900 --> 00:24:25,430
into their emergency operations
center in Tallahassee.

524
00:24:25,433 --> 00:24:28,963
We're going to do the same thing
in Mississippi, in Biloxi.

525
00:24:28,967 --> 00:24:32,097
So to the extent that they think
there is a problem or there is a

526
00:24:32,100 --> 00:24:33,200
problem, it doesn't
matter to us,

527
00:24:33,200 --> 00:24:34,870
we got to reduce the cycle
time, our ability to respond.

528
00:24:34,867 --> 00:24:36,167
We're going to do that by
putting leadership closer to the

529
00:24:36,166 --> 00:24:38,466
states, and the ability to make
decisions out there and put

530
00:24:38,467 --> 00:24:43,067
assets on target as soon
as we can, and quicker.

531
00:24:43,066 --> 00:24:45,196
The Press:
Following up on I think
it was Dan's question,

532
00:24:45,200 --> 00:24:47,570
on the $100 million, you had
been saying before that the oil

533
00:24:47,567 --> 00:24:49,797
rig workers that are put out of
work would basically be treated

534
00:24:49,800 --> 00:24:51,530
equally to other people.

535
00:24:51,533 --> 00:24:54,533
It now sounds like they're being
put into a different category

536
00:24:54,533 --> 00:24:57,133
with a limited amount of money.

537
00:24:57,133 --> 00:25:00,233
Are they now not going to be
treated as well as they would

538
00:25:00,233 --> 00:25:02,463
have if they could have applied
just like everybody else

539
00:25:02,467 --> 00:25:04,167
for the $20 billion?

540
00:25:04,166 --> 00:25:06,796
Ms. Browner:
I think there were some concerns about, under the law,

541
00:25:06,800 --> 00:25:09,170
their ability to
participate in the other fund,

542
00:25:09,166 --> 00:25:11,096
and we wanted to make sure that
there were mechanisms

543
00:25:11,100 --> 00:25:14,230
to address their needs.

544
00:25:14,233 --> 00:25:17,803
And so the $100 million
voluntary contribution by BP and

545
00:25:17,800 --> 00:25:20,170
the work that we're doing
in Congress we think is a

546
00:25:20,166 --> 00:25:23,536
significant step towards
meeting their needs.

547
00:25:23,533 --> 00:25:24,563
Mr. Gibbs:
And I would say this.

548
00:25:24,567 --> 00:25:28,797
You heard the President -- he
said this in the Gulf probably

549
00:25:28,800 --> 00:25:31,570
more than a week ago and
reiterated in his speech last

550
00:25:31,567 --> 00:25:36,497
night that he understands the
economic impact of the deepwater

551
00:25:36,500 --> 00:25:39,370
drilling moratorium,
understanding that we do not yet

552
00:25:39,367 --> 00:25:42,167
know what caused the accident.

553
00:25:42,166 --> 00:25:45,336
And because of that, the
President believed it was

554
00:25:45,333 --> 00:25:50,433
important to pause additional
deepwater drilling,

555
00:25:50,433 --> 00:25:53,063
but has asked the national
commission that will look into

556
00:25:53,066 --> 00:25:56,566
the regulatory framework that
we must have going forward to

557
00:25:56,567 --> 00:26:02,397
ensure drilling is safe, that
they can and should look at the

558
00:26:02,400 --> 00:26:06,600
framework around deepwater
drilling first and report back

559
00:26:06,600 --> 00:26:08,700
to him as soon as they can.

560
00:26:08,700 --> 00:26:12,070
They do not have to wait
for any set period of time.

561
00:26:12,066 --> 00:26:13,866
The Press:
But it sounds like
they're now kind of in a

562
00:26:13,867 --> 00:26:16,967
second-class here, having to
rely on this separate fund.

563
00:26:16,967 --> 00:26:19,837
And you say going to Congress
-- well, that's taxpayer money.

564
00:26:19,834 --> 00:26:22,064
So instead of -- so it sounds
like taxpayers are going to be

565
00:26:22,066 --> 00:26:24,496
paying for some portion of this.

566
00:26:24,500 --> 00:26:26,230
Ms. Browner:
It's for the
unemployment insurance

567
00:26:26,233 --> 00:26:27,833
portion of it.

568
00:26:27,834 --> 00:26:29,164
That's what we're
asking Congress.

569
00:26:29,166 --> 00:26:32,796
Some of the workers apparently
would qualify under existing

570
00:26:32,800 --> 00:26:34,070
law; some might not.

571
00:26:34,066 --> 00:26:37,036
So we're seeking to make sure
that all of them clarify -- and

572
00:26:37,033 --> 00:26:39,633
now there is this additional
fund that has been created.

573
00:26:39,633 --> 00:26:41,233
The Press:
And one other area, Feinberg.

574
00:26:41,233 --> 00:26:43,633
I mean, knowing him, he'll
get up and move in quickly.

575
00:26:43,633 --> 00:26:45,933
But he's got to set standards.

576
00:26:45,934 --> 00:26:48,904
I mean, there's a lot of
bureaucracy and setting

577
00:26:48,900 --> 00:26:50,630
up an operation here.

578
00:26:50,633 --> 00:26:53,463
How quickly will he actually
start handing money

579
00:26:53,467 --> 00:26:54,297
out to people?

580
00:26:54,300 --> 00:26:55,600
Ms. Browner:
It's important to
understand people can

581
00:26:55,600 --> 00:26:57,200
continue to file claims.

582
00:26:57,200 --> 00:26:58,730
This will be a
seamless transition.

583
00:26:58,734 --> 00:27:01,834
As Feinberg's operation comes
up, they will be shifted over.

584
00:27:01,834 --> 00:27:03,934
But there is a
claims process today.

585
00:27:03,934 --> 00:27:05,404
We all realize it's not working
the way we want it to work.

586
00:27:05,400 --> 00:27:07,330
That's part of why we
reached this agreement.

587
00:27:07,333 --> 00:27:09,163
The Press:
People down there are
saying that what they're getting

588
00:27:09,166 --> 00:27:10,096
is a drop in the bucket
compared to what they --

589
00:27:10,100 --> 00:27:11,130
Mr. Gibbs:
Chip, that's why --

590
00:27:11,133 --> 00:27:12,363
Ms. Browner:
That's why we set this up.

591
00:27:12,367 --> 00:27:12,997
That's why we did this.

592
00:27:13,000 --> 00:27:14,200
The Press:
But when will they be
getting the bucket rather

593
00:27:14,200 --> 00:27:16,170
than the drop in the bucket?

594
00:27:16,166 --> 00:27:17,866
Mr. Gibbs:
Well, we've asked Ken to set this up as quickly as he

595
00:27:17,867 --> 00:27:18,897
can and humanly possible.

596
00:27:18,900 --> 00:27:21,600
I think picking him, in somebody
who has done this before,

597
00:27:21,600 --> 00:27:24,630
understands, as you said, the
bureaucracy and the standards

598
00:27:24,633 --> 00:27:26,133
that have to take place.

599
00:27:26,133 --> 00:27:29,833
I do think it is important to
reiterate what Carol said,

600
00:27:29,834 --> 00:27:32,634
which is that if you were to
file a claim yesterday or today,

601
00:27:32,633 --> 00:27:35,933
you still fall within a 90-day
window to have that claim

602
00:27:35,934 --> 00:27:37,564
adjudicated.

603
00:27:37,567 --> 00:27:39,997
That will continue
to be the case.

604
00:27:40,000 --> 00:27:45,330
We believe that this will be
handed off in a seamless way and

605
00:27:45,333 --> 00:27:48,663
that we now have additional
backstops to ensure that claims

606
00:27:48,667 --> 00:27:52,167
are not just heard
independently,

607
00:27:52,166 --> 00:27:57,596
but the appeals process beyond
Ken Feinberg to a three-judge

608
00:27:57,600 --> 00:28:02,370
panel and ultimately retaining
their right under federal law if

609
00:28:02,367 --> 00:28:05,237
they're unsatisfied with even
what the three-judge panel

610
00:28:05,233 --> 00:28:06,963
rules, that they can
visit federal court.

611
00:28:06,967 --> 00:28:08,567
The Press:
The President has said that these are people with

612
00:28:08,567 --> 00:28:11,097
mortgage payments, boat
payments, families to feed.

613
00:28:11,100 --> 00:28:13,270
If they don't get this
money in a week or two,

614
00:28:13,266 --> 00:28:14,936
they could be looking
at food stamps.

615
00:28:14,934 --> 00:28:17,104
Mr. Gibbs:
Well, again, we are moving
as expeditiously and as

616
00:28:17,100 --> 00:28:18,900
quickly as we humanly can.

617
00:28:18,900 --> 00:28:20,130
Ms. Browner:
And there are
claims being honored.

618
00:28:20,133 --> 00:28:22,303
I mean, there are claims, and
we can get you the numbers;

619
00:28:22,300 --> 00:28:23,800
they're reported
on a regular basis.

620
00:28:23,800 --> 00:28:26,230
Mr. Gibbs:
Should get them from I think BP did a claims call yesterday.

621
00:28:26,233 --> 00:28:26,963
I don't know if you
guys were on that.

622
00:28:26,967 --> 00:28:29,367
Ms. Browner:
And we have the numbers,
Nick has the numbers.

623
00:28:29,367 --> 00:28:31,667
So we can get you the numbers --
the number of claims that have

624
00:28:31,667 --> 00:28:33,437
been responded to.

625
00:28:33,433 --> 00:28:37,433
But it's important; people
should go into that process,

626
00:28:37,433 --> 00:28:38,933
if they have a claim to date.

627
00:28:38,934 --> 00:28:40,504
They will be moved over as
this system is stood up.

628
00:28:40,500 --> 00:28:43,900
It's also important to
understand that under -- if the

629
00:28:43,900 --> 00:28:45,670
federal government
adjudicates the claims,

630
00:28:45,667 --> 00:28:47,897
that we make a one-time payment.

631
00:28:47,900 --> 00:28:52,000
Under this, people will be able
to apply over and over again as

632
00:28:52,000 --> 00:28:52,930
is necessary.

633
00:28:52,934 --> 00:28:54,634
So it won't be just
a one-time payment.

634
00:28:54,633 --> 00:28:56,263
Mr. Gibbs:
So in other words, if you're
a fisherman in Grand

635
00:28:56,266 --> 00:28:59,536
Isle, you don't have to estimate
-- because, quite frankly,

636
00:28:59,533 --> 00:29:01,733
I'm not sure anybody knows
how long the Gulf is

637
00:29:01,734 --> 00:29:02,564
going to be closed.

638
00:29:02,567 --> 00:29:05,937
You don't have to extrapolate 12
or 24 months in advance and come

639
00:29:05,934 --> 00:29:07,634
up with the paperwork
and what have you.

640
00:29:07,633 --> 00:29:09,363
You can file a claim now.

641
00:29:09,367 --> 00:29:12,397
If you're still not able
to fish sufficiently --

642
00:29:12,400 --> 00:29:14,170
Ms. Browner:
Two months from now.

643
00:29:14,166 --> 00:29:14,636
Mr. Gibbs:
-- right, two months from now.

644
00:29:14,633 --> 00:29:16,963
Because there's still
restrictions on fishing in

645
00:29:16,967 --> 00:29:19,437
certain parts of the Gulf,
you can refile until

646
00:29:19,433 --> 00:29:20,703
you're made whole.

647
00:29:20,700 --> 00:29:23,330
That's a different process
than if the -- as Carol said,

648
00:29:23,333 --> 00:29:25,033
if the federal government ran
it, it's a one-time deal.

649
00:29:25,033 --> 00:29:28,133
The Press:
But if I'm a fisherman
and my boat payment is

650
00:29:28,133 --> 00:29:30,133
due in two or three weeks,
am I going to get it,

651
00:29:30,133 --> 00:29:31,833
or is that just out of the
question that it would

652
00:29:31,834 --> 00:29:33,004
move that quickly?

653
00:29:33,000 --> 00:29:36,200
Mr. Gibbs:
You will have your
claim heard under the current

654
00:29:36,200 --> 00:29:38,800
process and seamlessly moved
over to a new independent

655
00:29:38,800 --> 00:29:44,100
process that we think gives
the certainty of the funding,

656
00:29:44,100 --> 00:29:50,900
as well as the independence
of a third party.

657
00:29:50,900 --> 00:29:52,270
Admiral Allen:
This is the overall summary.

658
00:29:52,266 --> 00:29:54,436
We can give you a more detailed
breakdown if you wish.

659
00:29:54,433 --> 00:29:59,833
But as of this morning, there
were over 66,000 claims filed.

660
00:29:59,834 --> 00:30:02,434
Disbursed was over $81 million;
they've already passed the $75

661
00:30:02,433 --> 00:30:03,503
million threshold --

662
00:30:03,500 --> 00:30:04,430
Ms. Browner:
That's paid.

663
00:30:04,433 --> 00:30:05,133
Admiral Allen:
-- claims.

664
00:30:05,133 --> 00:30:07,903
And checks cut, 26,000.

665
00:30:07,900 --> 00:30:10,830
So those are the overall
order of magnitude numbers.

666
00:30:10,834 --> 00:30:11,264
Mr. Gibbs:
Chuck.

667
00:30:11,266 --> 00:30:13,336
The Press:
Can you define
a "dissatisfied claimant"?

668
00:30:13,333 --> 00:30:16,733
Is that people that received
money and then in hindsight feel

669
00:30:16,734 --> 00:30:18,234
like, you know what,
that wasn't a fair thing?

670
00:30:18,233 --> 00:30:20,603
Could you just define
"dissatisfied claimants"?

671
00:30:20,600 --> 00:30:25,400
Ms. Browner:
Let's do how the current system works and how it will work.

672
00:30:25,400 --> 00:30:29,100
Right now, if you file a claim
under the current system and you

673
00:30:29,100 --> 00:30:31,630
are dissatisfied
with that claim,

674
00:30:31,633 --> 00:30:35,163
you have the right to go
to the federal trust fund,

675
00:30:35,166 --> 00:30:41,766
the oil spill liability trust
fund, or to go to court.

676
00:30:41,767 --> 00:30:44,767
What this sets up is
you can file a claim;

677
00:30:44,767 --> 00:30:47,997
Mr. Feinberg will determine
whether or not your claim should

678
00:30:48,000 --> 00:30:49,300
be paid, how much
should be paid.

679
00:30:49,300 --> 00:30:51,670
If you -- at that
moment, you can take it.

680
00:30:51,667 --> 00:30:53,637
And if two months later,
you're still not working,

681
00:30:53,633 --> 00:30:55,233
you can come back and
file another claim.

682
00:30:55,233 --> 00:30:56,603
Mr. Gibbs:
And BP is legally
bound to pay that.

683
00:30:56,600 --> 00:30:58,230
Ms. Browner:
They're legally bound to pay it.

684
00:30:58,233 --> 00:31:02,033
If you don't like what
Mr. Feinberg decides,

685
00:31:02,033 --> 00:31:07,563
you can go to a three-person
panel and have that reviewed.

686
00:31:07,567 --> 00:31:10,737
At the end of that panel,
you could take that.

687
00:31:10,734 --> 00:31:10,864
If you still don't like that --

688
00:31:10,867 --> 00:31:13,437
The Press:
Can you take -- if you're dissatisfied and take the money?

689
00:31:13,433 --> 00:31:14,233
Ms. Browner:
No.

690
00:31:14,233 --> 00:31:17,863
Well, if you're dissatisfied,
what you do -- if you don't like

691
00:31:17,867 --> 00:31:19,937
what Feinberg does, you go
to the three-person panel.

692
00:31:19,934 --> 00:31:21,834
If you don't like what the
three-person panel does,

693
00:31:21,834 --> 00:31:23,334
you then have a choice.

694
00:31:23,333 --> 00:31:25,403
You can go to the
federal trust fund,

695
00:31:25,400 --> 00:31:30,370
the oil spill liability trust
fund, or you can go into court.

696
00:31:30,367 --> 00:31:34,067
The Press:
But you can't take
the money and be dissatisfied?

697
00:31:34,066 --> 00:31:35,696
Ms. Browner:
You can't take the money
and be dissatisfied.

698
00:31:35,700 --> 00:31:40,030
But the big thing here is that
you will get a much more -- you

699
00:31:40,033 --> 00:31:43,103
will get a quicker answer, and
you can file over and over

700
00:31:43,100 --> 00:31:45,500
again, because that
was a real short --

701
00:31:45,500 --> 00:31:47,270
The Press:
You can file a
lawsuit if you choose to --

702
00:31:47,266 --> 00:31:47,696
Ms. Browner:
If you choose --

703
00:31:47,700 --> 00:31:48,300
The Press:
-- not to take the money?

704
00:31:48,300 --> 00:31:49,070
Ms. Browner:
Correct.

705
00:31:49,066 --> 00:31:49,736
The Press:
Okay.

706
00:31:49,734 --> 00:31:50,904
Mr. Gibbs:
I think it's also
important to understand,

707
00:31:50,900 --> 00:31:55,230
the 90-day process, the
three-person review panel is

708
00:31:55,233 --> 00:31:57,333
within the 90-day process.

709
00:31:57,333 --> 00:31:58,533
The Press:
They have to within --

710
00:31:58,533 --> 00:31:59,603
Ms. Browner:
They all have to be done.

711
00:31:59,600 --> 00:32:00,630
The Press:
-- the 90 days?

712
00:32:00,633 --> 00:32:01,233
Ms. Browner:
Right.

713
00:32:01,233 --> 00:32:02,833
The Press:
What did you guys agree
-- can you share with us

714
00:32:02,834 --> 00:32:05,934
the details of -- what is the
procedure to go back to BP and

715
00:32:05,934 --> 00:32:07,334
say, you know what, $20
billion isn't enough?

716
00:32:07,333 --> 00:32:09,803
Is there a specific procedure
you guys agreed upon when you go

717
00:32:09,800 --> 00:32:12,770
back and say -- if you need
-- you say it's not a floor,

718
00:32:12,767 --> 00:32:15,167
not a ceiling -- that
you go back and say,

719
00:32:15,166 --> 00:32:17,466
we need more money, is there
a specific procedure you guys

720
00:32:17,467 --> 00:32:18,197
agreed upon?

721
00:32:18,200 --> 00:32:20,830
Ms. Browner:
BP retains all of its liability.

722
00:32:20,834 --> 00:32:22,304
Nothing in that has changed.

723
00:32:22,300 --> 00:32:24,970
So if there wasn't money
available, let's say,

724
00:32:24,967 --> 00:32:29,437
you can go right back -- okay,
you could go straight to BP and

725
00:32:29,433 --> 00:32:30,803
say, I have this claim.

726
00:32:30,800 --> 00:32:33,570
So all of the rights of the
claimants have been preserved,

727
00:32:33,567 --> 00:32:34,037
right?

728
00:32:34,033 --> 00:32:36,733
Right now, this
new escrow account,

729
00:32:36,734 --> 00:32:39,804
this new claims facility,
will stand in its place.

730
00:32:39,800 --> 00:32:41,970
But if for some reason
there wasn't money in that,

731
00:32:41,967 --> 00:32:44,937
you have all of your rights to
go right back at BP and

732
00:32:44,934 --> 00:32:47,304
ask for the payment.

733
00:32:47,300 --> 00:32:48,770
The Press:
And that's the -- okay.

734
00:32:48,767 --> 00:32:50,697
And then, last night's speech --

735
00:32:50,700 --> 00:32:53,730
Ms. Browner:
The only people who have limited their rights here is BP.

736
00:32:53,734 --> 00:32:56,364
I think that's really, really
important to understand.

737
00:32:56,367 --> 00:32:57,537
The Press:
And if you accept the
money you have limited some

738
00:32:57,533 --> 00:32:58,803
of your rights.

739
00:32:58,800 --> 00:33:00,930
Ms. Browner:
Right, but that was true under the existing situation.

740
00:33:00,934 --> 00:33:03,604
We've given you a
better scenario now.

741
00:33:03,600 --> 00:33:05,830
The Press:
Last night's speech when
the President talked about

742
00:33:05,834 --> 00:33:08,304
energy legislation, he did not
specifically talk about

743
00:33:08,300 --> 00:33:13,630
pricing carbon, cap and
trade, et cetera.

744
00:33:13,633 --> 00:33:18,833
Is it -- what is the President's
-- does he -- will he accept a

745
00:33:18,834 --> 00:33:20,004
bill out of the U.S.

746
00:33:20,000 --> 00:33:21,570
Senate that doesn't have
this if he likes -- I mean,

747
00:33:21,567 --> 00:33:22,767
can you just walk
us through that?

748
00:33:22,767 --> 00:33:25,637
Mr. Gibbs:
Well, let me just say this.

749
00:33:25,633 --> 00:33:31,503
You've heard the President for
three and half years now talk

750
00:33:31,500 --> 00:33:34,970
about his approach to
comprehensive energy reform.

751
00:33:34,967 --> 00:33:39,297
I don't think he's -- I don't
think that's been unclear.

752
00:33:39,300 --> 00:33:44,730
He reiterated a call last night
and said that the greatest price

753
00:33:44,734 --> 00:33:48,234
we pay is the price of inaction.

754
00:33:48,233 --> 00:33:53,633
This morning the President spoke
with Senator Kerry and with

755
00:33:53,633 --> 00:33:58,933
Senator Lugar, each of whom have
energy legislation that the

756
00:33:58,934 --> 00:34:03,404
Senate is likely to take up
in the next several weeks.

757
00:34:03,400 --> 00:34:09,070
We announced that next Wednesday
we'll have a bipartisan group of

758
00:34:09,066 --> 00:34:12,466
senators to the White House to
discuss the process that the

759
00:34:12,467 --> 00:34:14,867
Senate will use moving forward.

760
00:34:14,867 --> 00:34:20,837
I think it is safe to say that
the President's direction on

761
00:34:20,834 --> 00:34:24,964
energy is very similar to
the direction that is in the

762
00:34:24,967 --> 00:34:30,397
Kerry-Lieberman bill, and that
the President feels strongly

763
00:34:30,400 --> 00:34:34,830
that including a component to
deal with climate is important

764
00:34:34,834 --> 00:34:36,864
in comprehensive energy reform.

765
00:34:36,867 --> 00:34:38,397
Now, let me just say this.

766
00:34:38,400 --> 00:34:39,900
There are a number of proposals.

767
00:34:39,900 --> 00:34:44,370
That's why Senator Lugar and
Senator Kerry both got calls.

768
00:34:44,367 --> 00:34:47,567
There have been ideas about
increasing energy-efficiency

769
00:34:47,567 --> 00:34:50,667
standards in buildings much as
Carol has worked tirelessly to

770
00:34:50,667 --> 00:34:55,067
do with cars, light trucks and
heavy duty trucks for

771
00:34:55,066 --> 00:34:55,596
the very first time.

772
00:34:55,600 --> 00:34:58,430
We met with -- the President met
with business executives at the

773
00:34:58,433 --> 00:35:05,033
White House last week, which --
one of their questions was why

774
00:35:05,033 --> 00:35:07,133
more money isn't spent on R&D
when they're spending

775
00:35:07,133 --> 00:35:08,463
a ton of money on R&D.

776
00:35:08,467 --> 00:35:10,967
There are a lot of
ways to get to this.

777
00:35:10,967 --> 00:35:15,237
The President is going to have a
meeting next week here to work

778
00:35:15,233 --> 00:35:17,003
through that process
going forward.

779
00:35:17,000 --> 00:35:19,570
The Press:
Are comparisons to the
public option fair,

780
00:35:19,567 --> 00:35:22,267
where this was something -- the
President supported the public

781
00:35:22,266 --> 00:35:26,166
option, but he got 90 percent of
what he wanted and he'd rather

782
00:35:26,166 --> 00:35:27,196
sign 90 percent --

783
00:35:27,200 --> 00:35:29,430
Mr. Gibbs:
You know, I don't know
why at this point it would

784
00:35:29,433 --> 00:35:32,833
be pertinent to get
into hypotheticals.

785
00:35:32,834 --> 00:35:38,004
Again, I think the President
-- go back to what he said at

786
00:35:38,000 --> 00:35:40,900
Pittsburgh a week
and a half ago.

787
00:35:40,900 --> 00:35:44,330
Go back to what he
said in 2006 as a U.S. senator.

788
00:35:44,333 --> 00:35:51,163
I think his position on how
to approach our energy policy

789
00:35:51,166 --> 00:35:54,336
comprehensively is
fairly well known.

790
00:35:54,333 --> 00:35:56,503
Yes, sir.

791
00:35:56,500 --> 00:35:57,470
The Press:
Two questions.

792
00:35:57,467 --> 00:36:00,767
One is, what is BP getting as
a result of this agreement?

793
00:36:00,767 --> 00:36:04,067
Are they getting any agreement
that they won't be found

794
00:36:04,066 --> 00:36:07,296
negligent at all?

795
00:36:07,300 --> 00:36:08,470
Mr. Gibbs:
Not that I'm aware of, no.

796
00:36:08,467 --> 00:36:09,367
Ms. Browner:
No.

797
00:36:09,367 --> 00:36:10,597
The Press:
And then, Ms. Browner,

798
00:36:10,600 --> 00:36:15,200
you had said that I guess BP
would I guess fund the fund with

799
00:36:15,200 --> 00:36:16,030
U.S. assets, so is it not cash?

800
00:36:16,033 --> 00:36:16,633
Or is it --

801
00:36:16,633 --> 00:36:20,203
Ms. Browner:
No, they will make payments
over a four-year period

802
00:36:20,200 --> 00:36:22,330
of $5 billion a year.

803
00:36:22,333 --> 00:36:26,833
But they will provide assurance
for those commitments by setting

804
00:36:26,834 --> 00:36:27,504
aside $20 billion in

805
00:36:27,500 --> 00:36:28,300
U.S. assets.

806
00:36:28,300 --> 00:36:30,670
It's like an insurance policy.

807
00:36:30,667 --> 00:36:33,297
It's not 20 and 20.

808
00:36:33,300 --> 00:36:35,930
It's they've committed
to $20 [billion],

809
00:36:35,934 --> 00:36:39,834
but we will have -- I want to
use the right legal word here --

810
00:36:39,834 --> 00:36:45,704
that they will provide assurance
by setting aside assets.

811
00:36:45,700 --> 00:36:49,900
So as the fund grows up,
as the fund grows in size,

812
00:36:49,900 --> 00:36:52,870
the assets could be reduced.

813
00:36:52,867 --> 00:36:54,497
It's just -- it's
an insurance policy.

814
00:36:54,500 --> 00:36:55,330
Mr. Gibbs:
Yes.

815
00:36:55,333 --> 00:36:56,903
The Press:
And what did --
what is BP getting out

816
00:36:56,900 --> 00:36:57,830
of this agreement?

817
00:36:57,834 --> 00:36:59,034
I mean what --

818
00:36:59,033 --> 00:37:02,533
Mr. Gibbs:
I would ask BP.

819
00:37:02,533 --> 00:37:06,133
They may have -- I think they'd
have a better way of reading out

820
00:37:06,133 --> 00:37:08,703
what they did and
why they did this.

821
00:37:08,700 --> 00:37:10,900
I think the President's
objectives in this was --

822
00:37:10,900 --> 00:37:13,600
objectives were clear.

823
00:37:13,600 --> 00:37:17,370
This provides certainty and
peace of mind for those in the

824
00:37:17,367 --> 00:37:21,737
Gulf if there was any wonder or
concern that they would not be

825
00:37:21,734 --> 00:37:24,934
made whole for the
disaster they didn't cause.

826
00:37:24,934 --> 00:37:29,764
That assurance we have today.

827
00:37:29,767 --> 00:37:34,237
And I think -- Carol mentioned
this briefly -- the story that

828
00:37:34,233 --> 00:37:37,363
the President spoke of with
the chair at the end of their

829
00:37:37,367 --> 00:37:43,467
meeting in the Oval Office was
that when -- the President asked

830
00:37:43,467 --> 00:37:47,037
the chair when when they're
talking about what's happening

831
00:37:47,033 --> 00:37:49,333
in the Gulf, when they're
talking and discussing these

832
00:37:49,333 --> 00:37:51,433
parameters with the board
and with other executives,

833
00:37:51,433 --> 00:37:57,233
it's the people that he's met in
his four trips -- the people in

834
00:37:57,233 --> 00:37:59,703
Grand Isle, the people in
Pensacola, the people in --

835
00:37:59,700 --> 00:38:02,100
Ms. Browner:
On Dauphin Island.

836
00:38:02,100 --> 00:38:08,000
Mr. Gibbs:
Dauphin Island -- who for
four generations have fished

837
00:38:08,000 --> 00:38:10,630
on these waters
to make a living,

838
00:38:10,633 --> 00:38:14,433
who have invested their
hard-earned money and their

839
00:38:14,433 --> 00:38:17,863
sweat in building their business
-- those are the people that the

840
00:38:17,867 --> 00:38:21,837
President has been focused on
throughout this process and

841
00:38:21,834 --> 00:38:24,534
believes -- he believes that
that's what BP should be focused

842
00:38:24,533 --> 00:38:26,263
on as they're discussing these.

843
00:38:26,266 --> 00:38:27,096
Mark.

844
00:38:27,100 --> 00:38:28,670
The Press:
Robert, on that point,

845
00:38:28,667 --> 00:38:32,697
is there a danger President
Obama is over-promising when he

846
00:38:32,700 --> 00:38:37,500
says, we'll make you whole and
make the Gulf Coast even better

847
00:38:37,500 --> 00:38:38,870
than it was before?

848
00:38:38,867 --> 00:38:40,567
I mean, people's lives have been
changed and it looks like it's

849
00:38:40,567 --> 00:38:45,337
going to get worse a long
time before it gets better.

850
00:38:45,333 --> 00:38:49,333
Mr. Gibbs:
Well, and the responsible
party has committed

851
00:38:49,333 --> 00:38:57,233
today through an escrow account
that starts at $20 billion to

852
00:38:57,233 --> 00:38:59,633
make them whole.

853
00:38:59,633 --> 00:39:02,663
Mark, if you're a fisherman
or you're a shrimper and your

854
00:39:02,667 --> 00:39:06,597
livelihood has been changed
because you're in what would

855
00:39:06,600 --> 00:39:10,500
traditionally be the heart of
the season where you made almost

856
00:39:10,500 --> 00:39:12,670
all of your income, you'll
be compensated for that.

857
00:39:12,667 --> 00:39:18,397
We've set out a process that is
-- that provides independence

858
00:39:18,400 --> 00:39:21,800
from the company that caused
that disaster with the assurance

859
00:39:21,800 --> 00:39:24,370
that the funding will be there.

860
00:39:24,367 --> 00:39:25,367
That's important.

861
00:39:25,367 --> 00:39:29,897
In terms of Gulf
Coast restoration,

862
00:39:29,900 --> 00:39:33,970
the President was concerned
about the region environmentally

863
00:39:33,967 --> 00:39:35,967
long before this disaster.

864
00:39:35,967 --> 00:39:42,567
And you've -- whether it was
manmade or a natural disaster --

865
00:39:42,567 --> 00:39:48,467
Katrina coming to mind -- that
has seen the wetlands and the

866
00:39:48,467 --> 00:39:54,867
marsh erode and become
degraded for many, many years,

867
00:39:54,867 --> 00:39:58,267
this President believes that we
have an obligation to return

868
00:39:58,266 --> 00:40:02,866
that valuable ecosystem and
environment to a place better

869
00:40:02,867 --> 00:40:07,797
than it was before
this accident happened.

870
00:40:07,800 --> 00:40:13,800
BP, as Carol said, is liable for
the environmental degradation

871
00:40:13,800 --> 00:40:17,130
through natural resource
damage assessments.

872
00:40:17,133 --> 00:40:20,933
Those will be assessed and that
bill will be provided to BP.

873
00:40:20,934 --> 00:40:26,464
And I believe the basis of
that will help restore the

874
00:40:26,467 --> 00:40:29,437
environmental vitality
of that region.

875
00:40:29,433 --> 00:40:31,033
The Press:
And are we right in assuming,

876
00:40:31,033 --> 00:40:34,363
based on what President
Obama said today,

877
00:40:34,367 --> 00:40:37,737
that no ass-kicking was
required at today's sessions?

878
00:40:37,734 --> 00:40:43,934
Mr. Gibbs:
Again, I think the
President was clear about what

879
00:40:43,934 --> 00:40:50,764
he thought BP was responsible
for and obligated to do.

880
00:40:50,767 --> 00:40:55,067
We came with that in mind
and left, importantly,

881
00:40:55,066 --> 00:40:58,266
with an agreement
that is substantive,

882
00:40:58,266 --> 00:41:01,296
providing the assurance,
providing the independence,

883
00:41:01,300 --> 00:41:09,730
providing the funding that I'm
sure people in the Gulf went to

884
00:41:09,734 --> 00:41:13,104
bed last night wondering whether
that was going to be possible.

885
00:41:13,100 --> 00:41:15,330
They'll go to sleep tonight
knowing that there's a process

886
00:41:15,333 --> 00:41:20,003
in place to do this quickly,
efficiently, transparently,

887
00:41:20,000 --> 00:41:23,470
and independently.

888
00:41:23,467 --> 00:41:26,237
And I think they will -- they'll
sleep better because of it.

889
00:41:26,233 --> 00:41:27,363
The Press:
If there wasn't an ass-kicking,

890
00:41:27,367 --> 00:41:28,767
was there a tense tone?

891
00:41:28,767 --> 00:41:30,037
Were there raised voices?

892
00:41:30,033 --> 00:41:31,533
Was it confrontational?

893
00:41:31,533 --> 00:41:33,203
Ms. Browner:
It was a business meeting.

894
00:41:33,200 --> 00:41:36,430
It was a focused
business meeting.

895
00:41:36,433 --> 00:41:38,403
We came to get something done.

896
00:41:38,400 --> 00:41:40,530
We were successful in doing what
we thought was important for the

897
00:41:40,533 --> 00:41:42,263
people of the Gulf.

898
00:41:42,266 --> 00:41:44,566
The Press:
-- BP said that the
President was frustrated.

899
00:41:44,567 --> 00:41:45,837
He clearly said at the
stakeout that the

900
00:41:45,834 --> 00:41:47,264
President was frustrated.

901
00:41:47,266 --> 00:41:50,096
Could you explain why, give
us some color about that?

902
00:41:50,100 --> 00:41:51,400
Mr. Gibbs:
Why he was frustrated?

903
00:41:51,400 --> 00:41:53,970
The Press:
I mean, what perpetuated
the frustration --

904
00:41:53,967 --> 00:41:54,897
Mr. Gibbs:
The last 58 days.

905
00:41:54,900 --> 00:41:56,330
The Press:
How did he express it?

906
00:41:56,333 --> 00:41:57,163
The Press:
Yes, how did he express it?

907
00:41:57,166 --> 00:41:59,266
What about tensions?

908
00:41:59,266 --> 00:42:02,496
Mr. Gibbs:
Look, again, the parts of the meeting that I were

909
00:42:02,500 --> 00:42:05,430
in were as Carol described them.

910
00:42:05,433 --> 00:42:08,303
I think when the President sat
down in the beginning of the

911
00:42:08,300 --> 00:42:15,530
meeting, it is fair to say he
outlined his viewpoint and the

912
00:42:15,533 --> 00:42:18,863
stories that he'd heard and that
we've all seen over the past

913
00:42:18,867 --> 00:42:25,867
eight-plus weeks --
the livelihoods of

914
00:42:25,867 --> 00:42:29,167
generations interrupted.

915
00:42:29,166 --> 00:42:31,166
As you heard the President say,
and you've heard this story a

916
00:42:31,166 --> 00:42:35,296
couple of times -- we were
talking about Dauphin Island in

917
00:42:35,300 --> 00:42:38,930
Alabama, a place that was just
beginning to recover

918
00:42:38,934 --> 00:42:39,834
after Katrina.

919
00:42:39,834 --> 00:42:44,604
This was to be the first
season, post-Katrina,

920
00:42:44,600 --> 00:42:47,730
where they thought the
economy was getting better.

921
00:42:47,734 --> 00:42:53,904
They had rebuilt after watching
a hurricane -- one of the

922
00:42:53,900 --> 00:42:56,730
reasons you take that ferry is
because that island doesn't --

923
00:42:56,734 --> 00:43:01,734
that's two islands now.

924
00:43:01,734 --> 00:43:08,304
So this was to be the season for
tourism or for fishing that this

925
00:43:08,300 --> 00:43:11,170
region was going to get
back up on its feet.

926
00:43:11,166 --> 00:43:13,266
And I think the President opened
the meeting by discussing

927
00:43:13,266 --> 00:43:14,196
those stories.

928
00:43:14,200 --> 00:43:16,030
And he ended his time with the
chair discussing

929
00:43:16,033 --> 00:43:19,733
those stories again.

930
00:43:19,734 --> 00:43:26,404
I don't think anybody from BP
would walk away from the last 58

931
00:43:26,400 --> 00:43:31,270
days or the meeting here not
knowing that the President,

932
00:43:31,266 --> 00:43:34,796
all of those involved in the
response and the recovery,

933
00:43:34,800 --> 00:43:35,900
have been frustrated.

934
00:43:35,900 --> 00:43:37,070
The Press:
What I'm asking is, again,

935
00:43:37,066 --> 00:43:39,666
I'm going to try to go back and
get something out to make you

936
00:43:39,667 --> 00:43:41,097
understand what I'm saying.

937
00:43:41,100 --> 00:43:42,470
Were there
clenched-teeth moments?

938
00:43:42,467 --> 00:43:45,167
Were there moments when he
struck the table with his fist

939
00:43:45,166 --> 00:43:47,266
to show his
frustration, anger --

940
00:43:47,266 --> 00:43:50,036
Mr. Gibbs:
I think his frustration
was exhibited in the

941
00:43:50,033 --> 00:43:54,363
stories that he told, the
stories that he's heard from the

942
00:43:54,367 --> 00:43:58,037
Gulf and the stories that he
took back to speak with the

943
00:43:58,033 --> 00:44:01,033
executives in the company that
are going to make the decisions

944
00:44:01,033 --> 00:44:05,203
that resulted today in the
knowledge that the people of the

945
00:44:05,200 --> 00:44:08,270
Gulf will indeed be made whole.

946
00:44:08,266 --> 00:44:09,166
I'm sorry, Roger.

947
00:44:09,166 --> 00:44:12,766
The Press:
Yes, I want to go to
BP's financial condition,

948
00:44:12,767 --> 00:44:14,397
if you could shed a
little light on that.

949
00:44:14,400 --> 00:44:17,600
Its bonds were trading at
distressed levels today,

950
00:44:17,600 --> 00:44:21,330
indicating a mounting concern
whether it can pay debts.

951
00:44:21,333 --> 00:44:25,803
And some people were saying
that there's about a 40 percent

952
00:44:25,800 --> 00:44:27,900
chance of default in
the next five years,

953
00:44:27,900 --> 00:44:31,970
based on its credit -- can you
take us behind -- and what was

954
00:44:31,967 --> 00:44:35,937
said by the company or the White
House's own financial analysis

955
00:44:35,934 --> 00:44:40,264
that says the company
will not default?

956
00:44:40,266 --> 00:44:45,936
Ms. Browner:
Well, we did not discuss with BP today their financial -- what's

957
00:44:45,934 --> 00:44:47,364
happening in the market.

958
00:44:47,367 --> 00:44:50,467
We obviously have had analysts
look at this situation.

959
00:44:50,467 --> 00:44:53,997
We believe that the
company has strong assets.

960
00:44:54,000 --> 00:44:58,100
They have a lot of assets that
they can -- they will continue

961
00:44:58,100 --> 00:45:02,370
to operate, continue
to be a viable company,

962
00:45:02,367 --> 00:45:05,467
and that they will be able to
honor the claims associated with

963
00:45:05,467 --> 00:45:07,337
this dreadful disaster.

964
00:45:07,333 --> 00:45:10,633
The Press:
Did they have any - make any suggestions about debts at all?

965
00:45:10,633 --> 00:45:12,263
Ms. Browner:
No.

966
00:45:12,266 --> 00:45:15,266
Mr. Gibbs:
Wendell.

967
00:45:15,266 --> 00:45:19,796
The Press:
Have you removed the
possibility of punitive damages

968
00:45:19,800 --> 00:45:20,570
from this equation?

969
00:45:20,567 --> 00:45:22,467
Ms. Browner:
Nothing was taken
off the table with respect to

970
00:45:22,467 --> 00:45:26,667
enforcement of the laws, whether
it be the Oil Pollution Act,

971
00:45:26,667 --> 00:45:29,937
the Clean Water Act,
and that was made clear.

972
00:45:29,934 --> 00:45:31,004
Nothing has been taken --

973
00:45:31,000 --> 00:45:32,770
The Press:
But in terms of government --

974
00:45:32,767 --> 00:45:33,367
Ms. Browner:
In terms of punitive --

975
00:45:33,367 --> 00:45:34,237
The Press:
-- seeking punitive damages.

976
00:45:34,233 --> 00:45:36,003
Ms. Browner:
Nothing has been
taken off the table in terms of

977
00:45:36,000 --> 00:45:38,200
the Justice Department's work.

978
00:45:38,200 --> 00:45:40,100
The Press:
Admiral Allen,
as I understand it,

979
00:45:40,100 --> 00:45:44,730
even if everything
works optimally,

980
00:45:44,734 --> 00:45:47,364
10 percent of the oil will still
be leaking into the water

981
00:45:47,367 --> 00:45:48,737
at the end of July.

982
00:45:48,734 --> 00:45:51,434
Is the President
satisfied with that pace?

983
00:45:51,433 --> 00:45:53,463
Admiral Allen:
Well, we hope by the end
of July we will have a

984
00:45:53,467 --> 00:45:56,067
new capping system and a new
production system that will give

985
00:45:56,066 --> 00:45:58,436
us up to 80,000 production
capability a day,

986
00:45:58,433 --> 00:46:01,103
and at that point, we're pretty
well assured there should be a

987
00:46:01,100 --> 00:46:03,600
minimal leakage
around that wellhead.

988
00:46:03,600 --> 00:46:06,770
Obviously the ultimate solution
is to drill the relief well,

989
00:46:06,767 --> 00:46:09,497
which we're looking for the
first two weeks of August.

990
00:46:09,500 --> 00:46:12,800
But based on the proposal we got
from BP last week and our second

991
00:46:12,800 --> 00:46:15,900
letter to them, they have come
in with counterproposals that

992
00:46:15,900 --> 00:46:19,000
have increased the production
capacity there that should have

993
00:46:19,000 --> 00:46:23,130
us, by the end of next week, up
to about 28,000 barrels a day,

994
00:46:23,133 --> 00:46:25,263
and then by the end of
June, 53,000 barrels.

995
00:46:25,266 --> 00:46:27,766
We're going to have to shift
from the containment cap we have

996
00:46:27,767 --> 00:46:30,397
now and put a harder cap on with
a device that will allow us to

997
00:46:30,400 --> 00:46:32,670
produce more oil that
will get up to 80,000.

998
00:46:32,667 --> 00:46:35,567
But the plan is to get
us to 80,000 by end July.

999
00:46:35,567 --> 00:46:38,637
The Press:
And that's 90 percent
containment -- we're talking

1000
00:46:38,633 --> 00:46:39,463
about the same thing?

1001
00:46:39,467 --> 00:46:40,967
Admiral Allen:
We're going to be shifting
from a containment

1002
00:46:40,967 --> 00:46:44,267
device to an actual cap that
will require us at some point to

1003
00:46:44,266 --> 00:46:47,666
literally unbolt the flange on
which that lower marine riser

1004
00:46:47,667 --> 00:46:50,697
pipe was on that was cut and
replace it with a new flange or

1005
00:46:50,700 --> 00:46:53,070
-- there's three different
options they have to do that.

1006
00:46:53,066 --> 00:46:55,166
That will -- we'll have to do
that to be able to jump from

1007
00:46:55,166 --> 00:46:56,766
53,000 to 80,000 barrels a day.

1008
00:46:56,767 --> 00:47:00,767
The Press:
There will still
be substantial oil offshore.

1009
00:47:00,767 --> 00:47:01,297
Admiral Allen:
Yes.

1010
00:47:01,300 --> 00:47:07,430
The Press:
At this time, are any
foreign-flagged skimmers headed

1011
00:47:07,433 --> 00:47:08,933
to this country -- not just the
skimming equipment we put

1012
00:47:08,934 --> 00:47:10,804
on our own boats?

1013
00:47:10,800 --> 00:47:13,400
Admiral Allen:
We have foreign-flagged vessels that are operating out there,

1014
00:47:13,400 --> 00:47:14,300
they're on the way.

1015
00:47:14,300 --> 00:47:16,000
We will not turn down any offer
that's viable that we can use

1016
00:47:16,000 --> 00:47:17,800
the equipment for.

1017
00:47:17,800 --> 00:47:19,670
The Press:
It's my understanding
offers of these things were made

1018
00:47:19,667 --> 00:47:22,897
early on and were turned down.

1019
00:47:22,900 --> 00:47:27,870
Admiral Allen:
We have an exhaustive list of when it was received and how we

1020
00:47:27,867 --> 00:47:28,467
acted upon with that.

1021
00:47:28,467 --> 00:47:29,667
We're glad to make that public.

1022
00:47:29,667 --> 00:47:30,437
The Press:
So there are foreign-flagged skimmers on the way?

1023
00:47:30,433 --> 00:47:32,233
Admiral Allen:
Foreign-flagged vessels are operating out there.

1024
00:47:32,233 --> 00:47:34,203
There's a difference between
skimmers and skimming equipment.

1025
00:47:34,200 --> 00:47:36,070
Mr. Gibbs:
There are foreign-flagged --

1026
00:47:36,066 --> 00:47:36,866
The Press:
I'm trying to be specific.

1027
00:47:36,867 --> 00:47:39,637
Mr. Gibbs:
No, no, I understand,
but I want -- you guys have been

1028
00:47:39,633 --> 00:47:43,063
focused on this now for several
days and I just want you to hear

1029
00:47:43,066 --> 00:47:44,066
what Admiral Allen said.

1030
00:47:44,066 --> 00:47:48,266
There are foreign vessels
operating as we all speak in the

1031
00:47:48,266 --> 00:47:49,766
Gulf right now.

1032
00:47:49,767 --> 00:47:52,067
Admiral Allen:
We haven't got to
a condition yet where they would

1033
00:47:52,066 --> 00:47:53,666
need a Jones Act waiver to
operate because they're

1034
00:47:53,667 --> 00:47:55,467
operating outside
of state waters.

1035
00:47:55,467 --> 00:47:59,597
BP has also gone out and
purchased from Canada, Mexico,

1036
00:47:59,600 --> 00:48:01,730
the Netherlands, and Norway --
wherever they can find a source

1037
00:48:01,734 --> 00:48:03,864
of supply, they are seeking it.

1038
00:48:03,867 --> 00:48:04,937
Mr. Gibbs:
David, did you have a follow?

1039
00:48:04,934 --> 00:48:06,634
The Press:
Yes, to followon the
containment issue.

1040
00:48:06,633 --> 00:48:10,033
Was there any reason that the
President or anyone else in the

1041
00:48:10,033 --> 00:48:13,433
meeting today had to pressure
BP to do anything else on the

1042
00:48:13,433 --> 00:48:14,803
containment front?

1043
00:48:14,800 --> 00:48:18,530
Or are you completely satisfied
with the course of action that

1044
00:48:18,533 --> 00:48:21,133
they laid out in the letter
as they're proceeding?

1045
00:48:21,133 --> 00:48:22,803
I mean, was that
not part of the --

1046
00:48:22,800 --> 00:48:24,200
Admiral Allen:
Well, as we briefed over
the last couple of

1047
00:48:24,200 --> 00:48:26,000
weeks, there's been a very
significant iterative process.

1048
00:48:26,000 --> 00:48:27,600
We said, give us a plan; we
said, not enough capacity,

1049
00:48:27,600 --> 00:48:31,070
not enough redundancy, not soon
enough -- and they came back,

1050
00:48:31,066 --> 00:48:32,396
they gave us another plan.

1051
00:48:32,400 --> 00:48:35,400
They've gone to some pretty
extraordinary lengths to bring

1052
00:48:35,400 --> 00:48:37,800
in these shuttle tankers that
are not normally used

1053
00:48:37,800 --> 00:48:39,100
in the Gulf of Mexico.

1054
00:48:39,100 --> 00:48:41,230
These are vessels that are
dynamically positioned so they

1055
00:48:41,233 --> 00:48:44,533
don't move, hooked to a flexible
hose to the production platform

1056
00:48:44,533 --> 00:48:46,263
that would allow us to ramp
up between 53,000 and

1057
00:48:46,266 --> 00:48:47,966
80, 000 barrels a day.

1058
00:48:47,967 --> 00:48:50,237
We've given them
the stretch goals.

1059
00:48:50,233 --> 00:48:51,303
They've come in and told us
how they're going to do it.

1060
00:48:51,300 --> 00:48:52,870
We need to monitor that now.

1061
00:48:52,867 --> 00:48:55,737
Ms. Browner:
And what we did --
we should point out -- we did at

1062
00:48:55,734 --> 00:48:58,064
the beginning of the meeting,
after the President left the

1063
00:48:58,066 --> 00:49:01,766
room, we did spend some time
going through these containment

1064
00:49:01,767 --> 00:49:04,397
plans, making sure that every
single thing was being

1065
00:49:04,400 --> 00:49:05,670
done to expedite.

1066
00:49:05,667 --> 00:49:07,697
They walked through the
different production schedules,

1067
00:49:07,700 --> 00:49:09,330
where different parts
are coming from,

1068
00:49:09,333 --> 00:49:09,403
where vessels are coming from.

1069
00:49:09,400 --> 00:49:11,100
Where vessels are coming from.

1070
00:49:11,100 --> 00:49:15,330
And as the Admiral said, we have
to obviously remain vigilant to

1071
00:49:15,333 --> 00:49:19,063
ensure that all those -- they're
actually -- in the case of

1072
00:49:19,066 --> 00:49:21,436
getting something
on the order of 50, 000

1073
00:49:21,433 --> 00:49:22,803
barrels per day by
the end of this month,

1074
00:49:22,800 --> 00:49:25,170
they're actually
manufacturing a riser.

1075
00:49:25,166 --> 00:49:28,096
There's not one in the world
that would work for this

1076
00:49:28,100 --> 00:49:30,830
particular application because
it's never been done before.

1077
00:49:30,834 --> 00:49:35,004
So it's actually in
a foundry being made.

1078
00:49:35,000 --> 00:49:36,930
The Press:
On the $100 million fund,

1079
00:49:36,934 --> 00:49:41,564
does that effectively limit BP's
responsibility for any worker

1080
00:49:41,567 --> 00:49:44,367
moratorium layoffs?

1081
00:49:44,367 --> 00:49:46,637
Ms. Browner:
Well, as we said, there were significant questions

1082
00:49:46,633 --> 00:49:51,203
about whether or not those
individuals would be eligible

1083
00:49:51,200 --> 00:49:55,170
for -- what's the word I
want to use -- under the

1084
00:49:55,166 --> 00:49:57,466
Oil Pollution Act.

1085
00:49:57,467 --> 00:49:59,397
And so what we wanted to do --
that's why we had already asked

1086
00:49:59,400 --> 00:50:06,030
Congress to look at changing the
unemployment compensation for

1087
00:50:06,033 --> 00:50:07,263
a disaster situation.

1088
00:50:07,266 --> 00:50:15,196
And now BP has made a commitment
of $100 million to a foundation

1089
00:50:15,200 --> 00:50:16,430
to address the needs
of these workers.

1090
00:50:16,433 --> 00:50:18,063
The Press:
And as far as the
government is concerned,

1091
00:50:18,066 --> 00:50:21,336
that settles the issue of BP's
liability for workers

1092
00:50:21,333 --> 00:50:22,363
who were laid off?

1093
00:50:22,367 --> 00:50:24,337
Ms. Browner:
The point I'm trying to make is there's a very significant legal

1094
00:50:24,333 --> 00:50:26,203
question about their liability.

1095
00:50:26,200 --> 00:50:28,230
And so this was a way for us
to address the needs

1096
00:50:28,233 --> 00:50:30,263
of these workers.

1097
00:50:30,266 --> 00:50:32,596
The Press:
Who is going to
administer that, and how?

1098
00:50:32,600 --> 00:50:35,670
And will it include people
who are not just rig workers

1099
00:50:35,667 --> 00:50:39,167
explicitly but also people who
are part of that deepwater who

1100
00:50:39,166 --> 00:50:41,096
are going to be just as affected
but aren't literally

1101
00:50:41,100 --> 00:50:41,970
rig workers?

1102
00:50:41,967 --> 00:50:45,197
Ms. Browner:
So it's important
to understand that today we

1103
00:50:45,200 --> 00:50:47,570
reached a very
extensive framework.

1104
00:50:47,567 --> 00:50:49,397
We covered an awful
lot of issues.

1105
00:50:49,400 --> 00:50:54,500
Obviously there were some
details to be further fleshed

1106
00:50:54,500 --> 00:50:56,770
out with lawyers, et cetera.

1107
00:50:56,767 --> 00:50:58,697
So, for example, you've asked
a question about foundation;

1108
00:50:58,700 --> 00:51:02,930
that's a detail
to be fleshed out.

1109
00:51:02,934 --> 00:51:04,764
The Press:
Is it just
rig workers explicitly,

1110
00:51:04,767 --> 00:51:06,337
or is it people who are part of
that larger economy that are

1111
00:51:06,333 --> 00:51:07,103
affected by the moratorium?

1112
00:51:07,100 --> 00:51:09,630
Ms. Browner:
It's focused on oil rig workers.

1113
00:51:09,633 --> 00:51:10,403
The Press:
Thanks, Robert.

1114
00:51:10,400 --> 00:51:13,070
During the campaign, the
President made a big point of

1115
00:51:13,066 --> 00:51:15,566
saying he would let science
guide his decisions.

1116
00:51:15,567 --> 00:51:18,497
But a majority of the scientists
consulted by Interior said they

1117
00:51:18,500 --> 00:51:21,400
never signed off on a blanket
deepwater drilling moratorium

1118
00:51:21,400 --> 00:51:22,700
and actually say
that's a bad way to go.

1119
00:51:22,700 --> 00:51:24,770
So why isn't the President
following their

1120
00:51:24,767 --> 00:51:26,067
recommendations on that?

1121
00:51:26,066 --> 00:51:28,966
Ms. Browner:
At the time of the accident,

1122
00:51:28,967 --> 00:51:31,997
the President asked Ken Salazar
at the Department of Interior to

1123
00:51:32,000 --> 00:51:34,230
undertake a 30-day review.

1124
00:51:34,233 --> 00:51:36,463
They reached out, they
talked to a lot of experts,

1125
00:51:36,467 --> 00:51:38,937
they got a lot of input.

1126
00:51:38,934 --> 00:51:44,364
Some of the people who provided
input did not -- let me say it

1127
00:51:44,367 --> 00:51:46,637
this way -- then policy
decisions were made based on

1128
00:51:46,633 --> 00:51:49,103
those recommendations.

1129
00:51:49,100 --> 00:51:52,870
Mr. Salazar made a decision
to recommend a moratorium;

1130
00:51:52,867 --> 00:51:54,437
that was a policy decision.

1131
00:51:54,433 --> 00:51:58,033
But the experts were providing
their expert advice,

1132
00:51:58,033 --> 00:52:01,033
but not the policy decisions
that were obviously under the

1133
00:52:01,033 --> 00:52:02,903
purview of the
Secretary of Interior.

1134
00:52:02,900 --> 00:52:05,370
Mr. Gibbs:
And I will say this
again -- I know the President

1135
00:52:05,367 --> 00:52:13,797
said this last night -- we
do not know what happened.

1136
00:52:13,800 --> 00:52:18,100
Thirty-three additional wells
were being drilled at

1137
00:52:18,100 --> 00:52:22,130
deepwater depths.

1138
00:52:22,133 --> 00:52:24,863
As we now know, the largest
environmental disaster in our

1139
00:52:24,867 --> 00:52:27,067
country was taking place.

1140
00:52:27,066 --> 00:52:33,296
The President did not think it
made sense to continue those

1141
00:52:33,300 --> 00:52:37,530
drilling activities as we were
dealing with this without

1142
00:52:37,533 --> 00:52:39,463
knowing what was going on.

1143
00:52:39,467 --> 00:52:43,567
And I've said this before
and I'll say it again,

1144
00:52:43,567 --> 00:52:46,937
the President has told
Governor Jindal and others,

1145
00:52:46,934 --> 00:52:51,964
you can't sit here and tell
me we can't trust BP to do

1146
00:52:51,967 --> 00:52:57,567
anything, but we're going to
take their word for it on the

1147
00:52:57,567 --> 00:53:02,797
four permits that they had
drilling in deep water,

1148
00:53:02,800 --> 00:53:04,830
even as we were dealing with
BP's disaster in the Gulf.

1149
00:53:04,834 --> 00:53:07,964
The President just wasn't
willing to take that chance.

1150
00:53:07,967 --> 00:53:11,197
We had a long discussion about
it because we understood and he

1151
00:53:11,200 --> 00:53:15,470
understood that this was not
a decision that didn't come

1152
00:53:15,467 --> 00:53:18,267
without some displacement.

1153
00:53:18,266 --> 00:53:25,236
But that was superseded by not
knowing what had happened and

1154
00:53:25,233 --> 00:53:30,333
what could potentially happen
if this happened again.

1155
00:53:30,333 --> 00:53:35,263
I daresay the resources that
would be necessary to deal with

1156
00:53:35,266 --> 00:53:42,066
this happening a second time in
that region would be hard to

1157
00:53:42,066 --> 00:53:43,436
describe in words, and the
President believed it just

1158
00:53:43,433 --> 00:53:47,703
wasn't a chance that
he wanted to take.

1159
00:53:47,700 --> 00:53:51,200
The Press:
Robert, there's a criminal investigation going on;

1160
00:53:51,200 --> 00:53:52,870
Justice is looking at the
actions of some of

1161
00:53:52,867 --> 00:53:55,067
the parties here.

1162
00:53:55,066 --> 00:53:57,596
BP executives were in a meeting
at the White House today talking

1163
00:53:57,600 --> 00:53:58,770
to the President.

1164
00:53:58,767 --> 00:54:01,397
Might the administration
look at any claims they made,

1165
00:54:01,400 --> 00:54:03,700
representations they
made, things they said,

1166
00:54:03,700 --> 00:54:07,570
with a view towards whether
these might -- with respect to

1167
00:54:07,567 --> 00:54:09,267
their own liability in this?

1168
00:54:09,266 --> 00:54:11,966
I mean, there's an
ongoing investigation.

1169
00:54:11,967 --> 00:54:14,267
Ms. Browner:
There was no discussion
about any -- at any

1170
00:54:14,266 --> 00:54:20,666
time in the meeting, there was
no discussion of any activities

1171
00:54:20,667 --> 00:54:24,497
related to the Department
of Justice investigation.

1172
00:54:24,500 --> 00:54:26,330
The Press:
So they didn't ask for immunity?

1173
00:54:26,333 --> 00:54:27,063
Ms. Browner:
No --

1174
00:54:27,066 --> 00:54:27,766
The Press:
Was there a transcript
of the conversation?

1175
00:54:27,767 --> 00:54:29,697
Ms. Browner:
No, there was
no request for immunity.

1176
00:54:29,700 --> 00:54:30,500
The Press:
Okay, a quick follow-up.

1177
00:54:30,500 --> 00:54:31,800
Ms. Browner:
Nor would one have been granted.

1178
00:54:31,800 --> 00:54:33,770
The Press:
Okay, a quick follow-up,

1179
00:54:33,767 --> 00:54:36,037
if we could get a flavor of the
meeting and how it went in the

1180
00:54:36,033 --> 00:54:39,033
sense of -- the amount
of money, for example,

1181
00:54:39,033 --> 00:54:41,263
the $20 billion
that was set aside,

1182
00:54:41,266 --> 00:54:43,166
did BP want to put
less into that fund?

1183
00:54:43,166 --> 00:54:44,996
Did they want the payments
stretched out over more than

1184
00:54:45,000 --> 00:54:46,030
four years?

1185
00:54:46,033 --> 00:54:48,503
Did they want to put nothing --
did they not want to create a

1186
00:54:48,500 --> 00:54:49,370
fund at all?

1187
00:54:49,367 --> 00:54:51,967
Did the President threaten to
use his legal authority in the

1188
00:54:51,967 --> 00:54:55,167
1990 act to go to
court if necessary?

1189
00:54:55,166 --> 00:54:57,566
I mean can you give
us some sense of this?

1190
00:54:57,567 --> 00:55:00,597
Ms. Browner:
As we said, it was
a very focused,

1191
00:55:00,600 --> 00:55:02,800
businesslike discussion.

1192
00:55:02,800 --> 00:55:05,770
The President had said what
he wanted to accomplish.

1193
00:55:05,767 --> 00:55:08,597
We then worked -- a group of us
worked with a group from BP,

1194
00:55:08,600 --> 00:55:11,530
including the chairman,
Mr. Hayward and others

1195
00:55:11,533 --> 00:55:13,703
to make that happen.

1196
00:55:13,700 --> 00:55:17,470
And like any time there's a
negotiation or discussion,

1197
00:55:17,467 --> 00:55:19,467
there are sticking points
and they get worked through.

1198
00:55:19,467 --> 00:55:22,437
And what we have now is the
product of that discussion.

1199
00:55:22,433 --> 00:55:26,303
And it is an incredibly
important and historic agreement

1200
00:55:26,300 --> 00:55:28,870
that we have achieved for the
people of the Gulf of Mexico.

1201
00:55:28,867 --> 00:55:30,297
Mr. Gibbs:
And I'd say this, Peter,

1202
00:55:30,300 --> 00:55:35,930
the reason the President had
this meeting was to come out

1203
00:55:35,934 --> 00:55:39,704
with an agreement like this.

1204
00:55:39,700 --> 00:55:45,270
That -- his goal has been to do
what we have to do to take care

1205
00:55:45,266 --> 00:55:48,566
of the people of the Gulf that
have been hurt environmentally

1206
00:55:48,567 --> 00:55:50,537
and economically.

1207
00:55:50,533 --> 00:55:55,533
Today, we come out with the
assurance through funding and

1208
00:55:55,533 --> 00:55:59,003
through an independent process
that that will take place.

1209
00:55:59,000 --> 00:56:02,900
That's what's driven his
actions this entire time.

1210
00:56:02,900 --> 00:56:06,030
This is a tangible and
substantive achievement that

1211
00:56:06,033 --> 00:56:08,733
goes a long way to a big part of
the speech that he talked

1212
00:56:08,734 --> 00:56:11,434
about last night.

1213
00:56:11,433 --> 00:56:12,503
The Press:
I believe Carol said at the beginning of the meeting,

1214
00:56:12,500 --> 00:56:15,830
though, this is something BP
was not going to do on its own.

1215
00:56:15,834 --> 00:56:18,204
I mean the President
had to push --

1216
00:56:18,200 --> 00:56:21,200
Mr. Gibbs:
Well, I think that's --
I think that is a push that's

1217
00:56:21,200 --> 00:56:23,770
been happening over
the past many days.

1218
00:56:23,767 --> 00:56:25,767
Ms. Browner:
Right, right.

1219
00:56:25,767 --> 00:56:33,637
Mr. Gibbs:
And you'd have to ask
them when they came to some

1220
00:56:33,633 --> 00:56:38,803
conclusion in their mind, we
have had -- we've had folks

1221
00:56:38,800 --> 00:56:45,130
looking at this for many days
beyond yesterday and today.

1222
00:56:45,133 --> 00:56:46,303
The Press:
I apologize, Robert,
I have to ask a question for a

1223
00:56:46,300 --> 00:56:50,900
colleague too on General Petreus
today played down the idea of a

1224
00:56:50,900 --> 00:56:54,530
December review of
progress in Afghanistan,

1225
00:56:54,533 --> 00:56:57,433
saying too much should not
be made of that review,

1226
00:56:57,433 --> 00:56:59,563
can you give us a sense
of the December review?

1227
00:56:59,567 --> 00:57:02,437
Do you still believe it's a key
point for evaluating progress

1228
00:57:02,433 --> 00:57:03,633
in Afghanistan?

1229
00:57:03,633 --> 00:57:04,903
Mr. Gibbs:
Well, there's no
question that the December

1230
00:57:04,900 --> 00:57:09,400
review is important, but without
having seen either the question

1231
00:57:09,400 --> 00:57:12,400
or General Petreus'
exact answer,

1232
00:57:12,400 --> 00:57:18,330
it's not as if -- it's not as if
that review isn't ongoing on a

1233
00:57:18,333 --> 00:57:20,933
daily, weekly and monthly basis.

1234
00:57:20,934 --> 00:57:25,064
Again, I'm happy to look
through the exact transcript,

1235
00:57:25,066 --> 00:57:30,296
but I think for some reason to
believe that that review process

1236
00:57:30,300 --> 00:57:34,670
would not exist until December
might be what he was

1237
00:57:34,667 --> 00:57:36,297
pushing back on.

1238
00:57:36,300 --> 00:57:39,470
Obviously, those theater
commanders provide the President

1239
00:57:39,467 --> 00:57:46,037
with written weekly updates
that are quite thick.

1240
00:57:46,033 --> 00:57:50,103
This is both
Afghanistan and Iraq.

1241
00:57:50,100 --> 00:57:55,400
As you know there are monthly
Situation Room meetings with the

1242
00:57:55,400 --> 00:57:58,430
Cabinet -- relevant
Cabinet members,

1243
00:57:58,433 --> 00:58:00,963
the President and
the Vice President.

1244
00:58:00,967 --> 00:58:04,167
And this review is
ongoing in nature.

1245
00:58:04,166 --> 00:58:04,936
April.

1246
00:58:04,934 --> 00:58:06,234
The Press:
Robert, two things.

1247
00:58:06,233 --> 00:58:09,003
Van Jones says of disperse-ments
-- disperse-ments,

1248
00:58:09,000 --> 00:58:13,700
not disappearance, what happens
to the disperse-ments now?

1249
00:58:13,700 --> 00:58:15,730
You're talking about the
capturing of the oil -- the

1250
00:58:15,734 --> 00:58:16,264
President talked --

1251
00:58:16,266 --> 00:58:18,036
Mr. Gibbs:
Just -- I'm sorry, let's make sure -- dispersants,

1252
00:58:18,033 --> 00:58:20,003
which is the liquid?

1253
00:58:20,000 --> 00:58:21,070
The Press:
Dispersants.

1254
00:58:21,066 --> 00:58:22,366
Mr. Gibbs:
Or a disbursement
which is the payment?

1255
00:58:22,367 --> 00:58:24,367
The Press:
Not -- I'm sorry dispersants --

1256
00:58:24,367 --> 00:58:25,337
Mr. Gibbs:
Okay.

1257
00:58:25,333 --> 00:58:26,933
The Press:
Okay.

1258
00:58:26,934 --> 00:58:30,004
On top of the oil -- he says,
the dispersants push the oil --

1259
00:58:30,000 --> 00:58:31,900
it's all about optics -- they
push the oil from the surface

1260
00:58:31,900 --> 00:58:35,430
down to the bottom of the ocean
where it kills shrimp -- the

1261
00:58:35,433 --> 00:58:37,533
marine life and
things of that nature,

1262
00:58:37,533 --> 00:58:42,003
so you're talking a capturing
90 percent of the oil,

1263
00:58:42,000 --> 00:58:44,700
but what happens to the
dispersant -- the oil that has

1264
00:58:44,700 --> 00:58:47,830
been pushed down
with the dispersants?

1265
00:58:47,834 --> 00:58:50,804
Mr. Gibbs:
Yes, do you want to do this?

1266
00:58:50,800 --> 00:58:52,900
Admiral Allen:
The purpose of dispersants
is to separate the

1267
00:58:52,900 --> 00:58:57,030
oil into smaller particles
so they biodegrade quicker.

1268
00:58:57,033 --> 00:58:59,303
Oil will ultimately biodegrade
at some weight -- there's a

1269
00:58:59,300 --> 00:59:02,530
metabolic rate for absorbing
oil into the Earth's oceans.

1270
00:59:02,533 --> 00:59:05,163
The dispersants
accelerate that somewhat.

1271
00:59:05,166 --> 00:59:07,766
And we are applying -- have
applied dispersants on the

1272
00:59:07,767 --> 00:59:10,237
surface and are applying them
subsea at the source

1273
00:59:10,233 --> 00:59:11,163
of the leak.

1274
00:59:11,166 --> 00:59:13,366
We have, because of the
extensive amounts of dispersants

1275
00:59:13,367 --> 00:59:15,997
that have been applied, have
limited to very particular

1276
00:59:16,000 --> 00:59:18,630
situations the dispersants
that are used on the surface,

1277
00:59:18,633 --> 00:59:20,603
just because of the unknown
factors associated with how much

1278
00:59:20,600 --> 00:59:22,100
we've had to use so far.

1279
00:59:22,100 --> 00:59:25,230
The most effective application
of dispersants is at the leak

1280
00:59:25,233 --> 00:59:27,633
site down at the bottom where
they could be most effective in

1281
00:59:27,633 --> 00:59:28,833
dispersing the oil.

1282
00:59:28,834 --> 00:59:32,664
The Press:
So but -- okay, with that,

1283
00:59:32,667 --> 00:59:34,597
that is a poison that
pushes the oil down.

1284
00:59:34,600 --> 00:59:35,670
What happens to that that?

1285
00:59:35,667 --> 00:59:37,597
You are pushing it
down -- what happens?

1286
00:59:37,600 --> 00:59:39,400
Admiral Allen:
The oil ultimately biodegrades.

1287
00:59:39,400 --> 00:59:41,400
It is suspended for a while
and then it biodegrades.

1288
00:59:41,400 --> 00:59:43,930
All oil will ultimately
weather and biodegrade.

1289
00:59:43,934 --> 00:59:45,734
Dispersants accelerate that.

1290
00:59:45,734 --> 00:59:47,864
And we know there is some
toxicity with dispersants,

1291
00:59:47,867 --> 00:59:50,767
but it is far less than
the toxicity of the oil.

1292
00:59:50,767 --> 00:59:52,267
The Press:
How long is it going
to take the biodegrading

1293
00:59:52,266 --> 00:59:54,536
to happen?

1294
00:59:54,533 --> 00:59:56,333
Admiral Allen:
I would -- we can check with NOAA and give the exact --

1295
00:59:56,333 --> 00:59:59,563
Ms. Browner:
I'm going to give you a way to think about this maybe.

1296
00:59:59,567 --> 01:00:03,267
If you have a oily pan
and you go to wash it,

1297
01:00:03,266 --> 01:00:05,296
you squirt some Dawn in, right?

1298
01:00:05,300 --> 01:00:05,930
And what --

1299
01:00:05,934 --> 01:00:06,204
The Press:

1300
01:00:06,200 --> 01:00:06,630
(inaudible)

1301
01:00:06,633 --> 01:00:07,263
Ms. Browner:
Dawn.

1302
01:00:07,266 --> 01:00:07,936
And what happens?

1303
01:00:07,934 --> 01:00:09,734
It starts to -- Dawn, right.

1304
01:00:09,734 --> 01:00:12,634
Okay, Joy, but actually
Dawn is the preferred.

1305
01:00:12,633 --> 01:00:15,533
And it starts -- that's how
they wash the animals, in Dawn.

1306
01:00:15,533 --> 01:00:17,303
They actually use
Dawn for the animals.

1307
01:00:17,300 --> 01:00:20,530
And it starts -- you know,
so in your kitchen sink,

1308
01:00:20,533 --> 01:00:23,133
you have the oil starting to
break up and you're seeing that

1309
01:00:23,133 --> 01:00:25,233
biodegrading process
right in front of you.

1310
01:00:25,233 --> 01:00:26,363
That's what happens.

1311
01:00:26,367 --> 01:00:27,337
The Press:
Okay and also --

1312
01:00:27,333 --> 01:00:28,333
Mr. Gibbs:
I don't do dishes so I can't

1313
01:00:28,333 --> 01:00:29,633
The Press:
Ooh!

1314
01:00:29,633 --> 01:00:36,033
(laughter)

1315
01:00:36,033 --> 01:00:38,103
Ms. Browner:
I bet he's doing
some dishes tonight.

1316
01:00:38,100 --> 01:00:42,700
(laughter)

1317
01:00:42,700 --> 01:00:44,630
The Press:
Oh, I reached
your home, didn't I?

1318
01:00:44,633 --> 01:00:45,863
Mr. Gibbs:
Yes -- or my sink, yes.

1319
01:00:45,867 --> 01:00:46,937
The Press:
Right.

1320
01:00:46,934 --> 01:00:50,264
On another subject, and
not to make light of this,

1321
01:00:50,266 --> 01:00:55,166
but there is a preconception
already about big oil versus

1322
01:00:55,166 --> 01:00:56,666
average America.

1323
01:00:56,667 --> 01:00:59,897
And when the chairman of
the board was at stakeout,

1324
01:00:59,900 --> 01:01:01,570
and I'm quite sure you heard
it -- did you all

1325
01:01:01,567 --> 01:01:02,897
hear the stakeout?

1326
01:01:02,900 --> 01:01:04,370
Mr. Gibbs:
We were in my office
getting ready.

1327
01:01:04,367 --> 01:01:05,937
I think we -- I heard
parts of it, yes.

1328
01:01:05,934 --> 01:01:07,934
The Press:
Did you hear at the end
when he said -- talked about

1329
01:01:07,934 --> 01:01:10,734
the President's frustration,
and then he said, you know,

1330
01:01:10,734 --> 01:01:13,004
the President is concerned
about the small people,

1331
01:01:13,000 --> 01:01:14,770
we're concerned about
the small people.

1332
01:01:14,767 --> 01:01:20,367
Those words kind of rang
very strong on television.

1333
01:01:20,367 --> 01:01:24,067
Talk to me, do you think it's
just the wrong terminology?

1334
01:01:24,066 --> 01:01:25,796
Do you think that
there was an arrogance?

1335
01:01:25,800 --> 01:01:27,370
I mean, because I'm
listening -- you guys said,

1336
01:01:27,367 --> 01:01:29,297
we're the ones who had
to push this forward,

1337
01:01:29,300 --> 01:01:31,300
we had to push the $20
million, we had to push this,

1338
01:01:31,300 --> 01:01:32,900
and it was all on
the White House side.

1339
01:01:32,900 --> 01:01:34,400
And what did they offer?

1340
01:01:34,400 --> 01:01:37,670
Were they worried about the
average American who are --

1341
01:01:37,667 --> 01:01:40,267
Mr. Gibbs:
Well, look, I'll let Carol talk about what's in the meeting.

1342
01:01:40,266 --> 01:01:45,366
Obviously, as I said before, in
meeting with both the chair and

1343
01:01:45,367 --> 01:01:47,737
meeting with the
group of executives,

1344
01:01:47,734 --> 01:01:53,604
as the President came in, it's
the people of the Gulf that the

1345
01:01:53,600 --> 01:01:58,170
President has had in mind
throughout this process as those

1346
01:01:58,166 --> 01:02:01,566
that he's fighting for.

1347
01:02:01,567 --> 01:02:06,197
Again, whether it's a
mom-and-pop restaurant that he

1348
01:02:06,200 --> 01:02:09,000
visited on this trip,
whether it's a shrimper,

1349
01:02:09,000 --> 01:02:14,330
whether it's a mayor who
represents constituents that

1350
01:02:14,333 --> 01:02:17,663
earn their living on the water
or through tourism or something

1351
01:02:17,667 --> 01:02:20,567
like that, that's -- those are
the people that the President

1352
01:02:20,567 --> 01:02:24,467
has had in mind throughout
this entire time.

1353
01:02:24,467 --> 01:02:25,367
The Press:
Wrong terminology, maybe --

1354
01:02:25,367 --> 01:02:27,137
Ms. Browner:
And let me say -- I mean, again,

1355
01:02:27,133 --> 01:02:29,633
we began in the Roosevelt Room;
we began with the President,

1356
01:02:29,633 --> 01:02:32,833
the Cabinet, and the
BP representatives.

1357
01:02:32,834 --> 01:02:35,304
And when the chairman
of the company spoke,

1358
01:02:35,300 --> 01:02:36,730
he did begin with an apology.

1359
01:02:36,734 --> 01:02:38,864
So I think Robert's
point is exactly right.

1360
01:02:38,867 --> 01:02:41,737
When the President spoke, he
spoke about the people he's met.

1361
01:02:41,734 --> 01:02:45,904
He spoke about his trips to
Louisiana and across Alabama and

1362
01:02:45,900 --> 01:02:46,800
Mississippi and Florida.

1363
01:02:46,800 --> 01:02:49,370
The Press:
Wrong terminology on
behalf of BP?

1364
01:02:49,367 --> 01:02:50,837
The Press:
Thanks, Robert.

1365
01:02:50,834 --> 01:02:54,064
The Press:
Robert, you said before that -- and I just want

1366
01:02:54,066 --> 01:02:56,936
you to clarify -- with
regard to Kerry-Lieberman,

1367
01:02:56,934 --> 01:02:59,804
you seem to indicate that that
would be sort of the basis from

1368
01:02:59,800 --> 01:03:01,300
which the President
would move forward.

1369
01:03:01,300 --> 01:03:03,270
Is he committed to having
that be the starting point?

1370
01:03:03,266 --> 01:03:05,296
Mr. Gibbs:
Well, again, what
I said was I think that the

1371
01:03:05,300 --> 01:03:07,270
principles enlisted in
Kerry-Lieberman are consistent

1372
01:03:07,266 --> 01:03:14,796
with the principles that the
President has outlined on

1373
01:03:14,800 --> 01:03:17,900
countless occasions dating back
-- I would say dating back to

1374
01:03:17,900 --> 01:03:21,200
the campaign but likely dating
back to his service in the

1375
01:03:21,200 --> 01:03:22,270
U.S. Senate.

1376
01:03:22,266 --> 01:03:23,736
The Press:
Well, one of those
occasions was last night,

1377
01:03:23,734 --> 01:03:24,964
and he didn't mention
it explicitly.

1378
01:03:24,967 --> 01:03:28,367
And a lot of folks on the Hill
interpreted the ambiguity that

1379
01:03:28,367 --> 01:03:30,137
he left in terms of
the legislation --

1380
01:03:30,133 --> 01:03:35,033
Mr. Gibbs:
You know, I'd focus
on what the President said and

1381
01:03:35,033 --> 01:03:36,963
has said on any
number of occasions --

1382
01:03:36,967 --> 01:03:38,067
The Press:
But Robert,
with all due respect,

1383
01:03:38,066 --> 01:03:39,336
they have to pass this
thing on the Hill,

1384
01:03:39,333 --> 01:03:40,303
and there is a sense that --

1385
01:03:40,300 --> 01:03:42,100
Mr. Gibbs:
With all due respect,
I understand the

1386
01:03:42,100 --> 01:03:42,730
legislative process.

1387
01:03:42,734 --> 01:03:44,464
(laughter)

1388
01:03:44,467 --> 01:03:44,967
The Press:
There is a --

1389
01:03:44,967 --> 01:03:46,237
Mr. Gibbs:
Thanks, I've seen
how a bill becomes a law.

1390
01:03:46,233 --> 01:03:47,703
The Press:
I know.

1391
01:03:47,700 --> 01:03:49,630
I could play it for you.

1392
01:03:49,633 --> 01:03:52,003
No, but there is a sense that
the President's omission of

1393
01:03:52,000 --> 01:03:53,800
Kerry-Lieberman has given --

1394
01:03:53,800 --> 01:03:57,600
Mr. Gibbs:
Yes, again, I don't know
how I can be more clear,

1395
01:03:57,600 --> 01:03:59,600
I don't know how the President
can be more clear than to look

1396
01:03:59,600 --> 01:04:01,770
at what he said in Pittsburgh.

1397
01:04:01,767 --> 01:04:03,337
The Press:
Well, is he committed to
having Kerry-Lieberman be the

1398
01:04:03,333 --> 01:04:04,403
basis for this deal?

1399
01:04:04,400 --> 01:04:06,470
Mr. Gibbs:
He is committed
to exactly what he said in

1400
01:04:06,467 --> 01:04:08,297
Pittsburgh and what he's said on
countless occasions and what I

1401
01:04:08,300 --> 01:04:12,200
said here today, that climate
should be -- that climate has to

1402
01:04:12,200 --> 01:04:15,530
be a component of a
comprehensive energy plan.

1403
01:04:15,533 --> 01:04:17,233
The Press:
Why didn't he mention
carbon caps in the speech if

1404
01:04:17,233 --> 01:04:18,233
he's committed --

1405
01:04:18,233 --> 01:04:22,463
Mr. Gibbs:
You know, I'd love
to play "seek a word" with you.

1406
01:04:22,467 --> 01:04:25,837
I think the President -- I
understand you've got

1407
01:04:25,834 --> 01:04:27,004
to write a story.

1408
01:04:27,000 --> 01:04:30,900
Go back and look at -- and
I could email it to you,

1409
01:04:30,900 --> 01:04:34,400
it would crash your computer --
all the times the President has

1410
01:04:34,400 --> 01:04:36,770
talked about a
comprehensive strategy.

1411
01:04:36,767 --> 01:04:37,367
The Press:
Thanks, Robert.

1412
01:04:37,367 --> 01:04:39,497
I have two quick questions.

1413
01:04:39,500 --> 01:04:45,570
First, last week there were
reports that BP was considering

1414
01:04:45,567 --> 01:04:48,367
suspending one of their dividend
payments and that they wanted to

1415
01:04:48,367 --> 01:04:51,467
get a cooling of the rhetoric
from the White House.

1416
01:04:51,467 --> 01:04:55,097
And it looks like now today you
got three dividend

1417
01:04:55,100 --> 01:04:56,870
payments suspended.

1418
01:04:56,867 --> 01:04:59,337
Was there any giveback -- was
there any talk at all about

1419
01:04:59,333 --> 01:05:02,503
cooling the anti-BP
rhetoric in the meeting?

1420
01:05:02,500 --> 01:05:03,200
Mr. Gibbs:
None that I know of, no.

1421
01:05:03,200 --> 01:05:04,500
Ms. Browner:
No.

1422
01:05:04,500 --> 01:05:06,900
The Press:
And my second question,

1423
01:05:06,900 --> 01:05:09,370
both -- Jon Stewart last week
and this week has been very

1424
01:05:09,367 --> 01:05:10,637
critical of the President.

1425
01:05:10,633 --> 01:05:13,303
Keith Olbermann last night
really badly trashed the

1426
01:05:13,300 --> 01:05:15,100
President's speech.

1427
01:05:15,100 --> 01:05:17,330
Is the President or the White
House concerned at all about

1428
01:05:17,333 --> 01:05:19,863
losing two such influential
allies in the media?

1429
01:05:19,867 --> 01:05:21,467
Mr. Gibbs:
No. No. Ken.

1430
01:05:21,467 --> 01:05:23,367
The Press: Robert,
this is non-BP --

1431
01:05:23,367 --> 01:05:27,997
Mr. Gibbs:
I will say this --
can I say this?

1432
01:05:28,000 --> 01:05:31,270
I've said this before; I'll
reiterate it -- if the President

1433
01:05:31,266 --> 01:05:34,366
had decided to run for President
based on what the pundits were

1434
01:05:34,367 --> 01:05:38,297
saying in December of
2006 and January of 2007,

1435
01:05:38,300 --> 01:05:39,430
he'd be in the Senate.

1436
01:05:39,433 --> 01:05:41,633
No, no, hold on.

1437
01:05:41,633 --> 01:05:47,263
I appreciate the pulse -- the
hand on the pulse of America by

1438
01:05:47,266 --> 01:05:50,296
those that live on cable TV.

1439
01:05:50,300 --> 01:05:56,200
I don't actually think that's
where all of real America lives.

1440
01:05:56,200 --> 01:05:58,300
The Press:
Okay.

1441
01:05:58,300 --> 01:05:59,370
Non-BP-related.

1442
01:05:59,367 --> 01:06:02,967
Right before this, Dan Pfeiffer
put out a statement urging the

1443
01:06:02,967 --> 01:06:05,567
passage of the DISCLOSE Act.

1444
01:06:05,567 --> 01:06:07,797
One of the things that some of
the good-government groups have

1445
01:06:07,800 --> 01:06:11,400
complained about is this deal
that was cut for the NRA in

1446
01:06:11,400 --> 01:06:14,970
terms of moving around
disclosure requirements.

1447
01:06:14,967 --> 01:06:17,337
Can you talk specifically
whether/why the President

1448
01:06:17,333 --> 01:06:20,163
objects to that
deal and why that --

1449
01:06:20,166 --> 01:06:22,496
Mr. Gibbs:
Tim, I have been -- I've been out here while that

1450
01:06:22,500 --> 01:06:22,970
must have gone up.

1451
01:06:22,967 --> 01:06:29,197
I'll be happy to go look at what
was put out and give a sense of

1452
01:06:29,200 --> 01:06:30,270
what's in that agreement.

1453
01:06:30,266 --> 01:06:30,866
Thanks, guys.