KATRINA NEWS & STORIES

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Mayor: Katrina May Have Killed Thousands
Aug 31 2:38 PM US/Eastern

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By BRETT MARTEL class=bylineAssociated Press Writer

NEW ORLEANS
The mayor said Wednesday that Hurricane Katrina probably killed thousands of people in New Orleans.

"We know there is a significant number of dead bodies in the water," and others dead in attics, Mayor Ray Nagin said. Asked how many, he said: "Minimum, hundreds. Most likely, thousands."

The frightening prediction came as Army engineers struggled to plug New Orleans' breached levees with giant sandbags and concrete barriers, while authorities drew up plans to move some 25,000 storm refugees out of the city to Houston in a huge bus convoy and all but abandon flooded-out New Orleans.

Gov. Kathleen Blanco said the situation was desperate and there was no choice but to clear out.

"The logistical problems are impossible and we have to evacuate people in shelters," the governor said. "It's becoming untenable. There's no power. It's getting more difficult to get food and water supplies in, just basic essentials."

The Pentagon, meanwhile, began mounting one of the largest search-and- rescue operations in U.S. history, sending four Navy ships to the Gulf Coast with drinking water and other emergency supplies, along with the hospital ship USNS Comfort, search helicopters and elite SEAL water- rescue teams. American Red Cross workers from across the country converged on the devastated region in the agency's biggest-ever relief operation.

The death toll from Hurricane Katrina has reached at least 110 in Mississippi alone. But Louisiana has put aside the counting of the dead to concentrate on rescuing the living, many of whom were still trapped on rooftops and in attics.

A full day after the Big Easy thought it had escaped Katrina's full fury, two levees broke and spilled water into the streets Tuesday, swamping an estimated 80 percent of the bowl-shaped, below-sea-level city, inundating miles and miles of homes and rendering much of New Orleans uninhabitable for weeks or months.

"We are looking at 12 to 16 weeks before people can come in," Nagin said on ABC's "Good Morning America, "and the other issue that's concerning me is we have dead bodies in the water. At some point in time the dead bodies are going to start to create a serious disease issue."

With the streets awash and looters brazenly cleaning out stores, authorities planned to move at least 25,000 of New Orlean's storm refugees _ most of them taking shelter in the dank and sweltering Superdome _ to the Astrodome in Houston in a vast exodus by bus.

Around midday, officials with the state and the Army Corps of Engineers said the water levels between the city and Lake Pontchartrain had equalized, and water had stopped rising in New Orleans, and even appeared to be falling, at least in some places. But the danger was far from over.

The Army Corps of Engineers said it planned to use heavy-duty Chinook helicopters to drop 3,000-pound sandbags Wednesday into the 500-foot gap in the failed floodwall. But the agency said it was having trouble getting the sandbags and dozens of 15-foot highway barriers to the site because the city's waterways were blocked by loose barges, boats and large debris.

Officials said they were also looking at a more audacious plan: finding a barge to plug the 500-foot hole.

"The challenge is an engineering nightmare," the governor said on ABC's "Good Morning America."

As New Orleans descended deeper into chaos, hundreds of people wandered aimlessly up and down Interstate 10, pushing shopping carts, laundry racks, anything they could find to carry their belongings. Dozens of fishermen from up to 200 miles away floated in on caravans of boats to pull residents out of flooded neighborhoods.

On some of the few roads that were still passable, people waved at passing cars with empty water jugs, begging for relief. Hundreds of people appeared to have spent the night on a crippled highway.

In one east New orleans neighborhood, refugees were being loaded onto the backs of moving vans like cattle, and in one case emergency workers with a sledgehammer and an ax broke open the back of a mail truck and used it to ferry sick and elderly residents.

Police officers were asking residents to give up any guns they had before they boarded buses and trucks because police desperately needed the firepower: Some officers who had been stranded on the roof of a motel said they were being shot at overnight.

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White House to Tap Oil Reserves A WALL STREET JOURNAL ONLINE NEWS ROUNDUP August31,20058:21a.m.
WASHINGTON -- Energy Secretary Samuel W. Bodman said Wednesday the Bush administration has decided to release oil from federal petroleum reserves to help refiners affected by Hurricane Katrina.

"In a word. It is going to be done," Mr. Bodman said during a CNBC interview.

The move, which was expected later in the day, is designed to give refineries in the Gulf Coast area a temporary supply of crude oil to take the place of interrupted shipments from tankers or offshore oil platforms affected by the storm.Mr. Bodman also rejected the idea of imposing a nationwide cap on the price of gasoline. "I don't think you'd find a lot of support for that," Mr. Bodman said on CNN. No one has asked him for one, he said.

The U.S. Minerals Management Service said Tuesday that 95% of the Gulf of Mexico's oil output was out of service. Oil prices surged back above $70 in European markets on Wednesday but slipped quickly to $69.56 after disclosure of the decision involving the release of supplies from the Strategic Petroleum Reserve. Eight refineries were shut down due to Katrina -- half of them producing gasoline.

The government's emergency petroleum stockpile -- nearly 700 million barrels of oil stored in underground salt caverns along the Texas and Louisiana Gulf Coast -- was established to cushion oil markets during energy disruptions.

The production and distribution of oil and gas remained severely disrupted by the shutdown of a key oil import terminal off the coast of Louisiana and by the Gulf region's widespread loss of electricity, which is needed to power pipelines and refineries.

President Bush, meanwhile, was returning to Washington on Wednesday to oversee the federal response to Katrina. He planned to chair a meeting of a White House task force set up to coordinate federal efforts, across more than a dozen agencies, to assist hurricane victims.

Mr. Bush also was expected to visit the ravaged region by week's end, but details on that trip were in flux as the White House worked to make sure a presidential tour would not disrupt the relief and response efforts.

Mr. Bodman said the decision to release reserves was made late Tuesday and was too early to say how much oil would be released. He said the reserve was contained in five sites, four of which are operative. The site in New Orleans is not.

He said his department was dealing with inquiries from three companies about getting oil from the reserve. On Monday, Citgo Petroleum Corp. asked for 250,000 to 500,000 barrels to ensure that its Lake Charles, La., refinery doesn't run out.

"There is an issue with respect to getting electrical power so that we can operate the various pipe lines that supply fuel to the rest of the country," he said, noting that these facilities "deliver finished products, diesel and gasoline, to the Northeast and to the Southeast."

"Our job is to get the infrastructure going again," Mr. Bodman said. "To the extent that we have delays in getting these pipelines functioning, then were are going to have the potential for gasoline shortages." Mr. Bodman said the administration will "do everything we can do to get fuel available to the rest of the country."

Of tapping the SPR, Mr. Bodman said: "Technically it's called an exchange of oil that we deliver today and that we will get oil back plus some interest, if you will, in the future. We will be tapping that today."

Interviewed on the Fox News Channel, Mr. Bodman was asked if price gouging is taking place.

"I would like to believe that in this time of crisis that all of us are going to pull together to try to deal with this very difficult circumstance and situation that's confronting not just this region, but this country," he replied. "We're hopeful of that, but if we have some bad actors, we have a mechanism to deal with it."
 
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[font=Arial,sans-serif]More than 95 percent of Gulf oil production lost

8/30/2005, 2:24 p.m. CT By ALAN SAYRE The Associated Press

BATON ROUGE, La. (AP) — As oil prices flirted with the $70 per barrel mark, more than 95 percent of the Gulf of Mexico's normal daily oil production was shut in Tuesday because of Hurricane Katrina, a federal agency said.

The U.S. Minerals Management Service said 645 of the 819 staffed production platforms in the Gulf were shut down, delaying production of 1.43 million barrels of oil. On a normal day, the Gulf produces 1.5 million barrels.

The shutdowns also delayed production of 8.8 billion cubic feet of natural gas, or 88 percent of the Gulf's normal daily gas production of 10 billion cubic feet, the MMS reported from a survey of 68 companies.

Since Katrina first threatened Gulf platforms, 4.63 million barrels of oil and 25.4 billion cubic feet of gas have been delayed from reaching market.

Storm-related production delays in the Gulf, which accounts for about a third of nation's domestic oil production, have figured increasingly into energy price jumps. In July, three Gulf storms interrupted production.

Hurricane Emily delayed production of 240,024 barrels of oil and 1.58 billion cubic feet of natural gas. Hurricane Dennis interrupted the production of 5.29 million barrels of oil and 23.3 billion cubic feet of gas. Tropical Storm Emily delayed production of 312,127 barrels of oil and 1.7 billion cubic feet of natural gas, the MMS said.

Last fall's Hurricane Ivan damaged seven platforms, 100 underwater pipelines and resulted in the loss of nearly 44 million barrels of oil production between September 2004 and February 2005.

The Gulf normally produces 547.5 million barrels of oil and 3.65 trillion cubic feet of gas a year.

On Tuesday, the MMS also said 90 drilling rigs exploring for petroleum in the Gulf were evacuated.

On the Net: U.S. Minerals Management Service: [url]http://www.mms.gov [/url]
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