Blowout: A Special Report

<v Announcer>Special report. Stay tuned. <v Announcer>Funding for this program provided by this station and other public television stations. <v Narrator>Since June 3rd of this year, a Mexican owned and operated oil well in the Gulf of Mexico

<v Narrator>has spewed thousands of barrels of crude into the Gulf. <v Narrator>All efforts to cap the runaway well have failed. <v Narrator>Not even renowned oil firefighter Red Adair has been able to stem the constant flow of <v Narrator>oil and natural gas. There is no telling if and when the well will be capped. <v Narrator>Meanwhile, residents of the South Texas coast have lost millions of dollars in tourist <v Narrator>revenues. Fishermen are wondering if the spill will damage future shrimp and redfish <v Narrator>crops. Charges and countercharges over liability for damages have swelled print <v Narrator>and broadcast news reports since August. <v Narrator>Lawsuits have been lodged against the Mexican oil and drilling companies and against <v Narrator>Sedco, the drilling contracting firm founded by Texas Governor Bill Clements. <v Narrator>But throughout the entire episode, the frightening specter of future spills has been <v Narrator>foremost in everybody's minds. <v Unnamed commentator>But our technology in this country. Yes, we do have fine technology in this country, <v Unnamed commentator>but let me state emphatically that there is no nation in the world <v Unnamed commentator>that has the capabilities to deal with the amount of oil on the high seas <v Unnamed commentator>that has impacted the Gulf of Mexico.

<v Unnamed commentator>The technology in the world is just not there. <v Unnamed commentator>The best we can do is to hope to minimize the effects of the oil <v Unnamed commentator>that does reach our continental shelf areas, our estuarine <v Unnamed commentator>areas, and finally, our shoreline. <v Unnamed commentator>The best way to minimize damage <v Unnamed commentator>in this, in these kinds of instances, of course, is not to let them happen in the first <v Unnamed commentator>place. <v Narrator>Despite the considerable damage caused by the spill, Mexican leaders have reason to <v Narrator>rejoice. The vast quantities of oil escaping from the well confirm their belief that the <v Narrator>Bay of Campeche holds unequaled hydrocarbon deposits. <v Narrator>Officials now estimate that nearly 800 million barrels of crude lie beneath the damaged <v Narrator>wellhead. Moreover, total proven reserves for the entire Bay of Campeche are now listed <v Narrator>at over 10 billion barrels. <v Narrator>For a nation that has faced severe economic conditions for many years, oil could provide <v Narrator>a solid foundation for a secure future. <v José López Portillo y Pacheco>[Speaking Spanish with the translator speaking over him at times, just keeping translator audio]

<v José López Portillo y Pacheco's translator> We want to make our oil the axis, the tutor, <v José López Portillo y Pacheco's translator>for the development of our country.Starting <v José López Portillo y Pacheco's translator>from the plans we have to make it possible for us to have energy available <v José López Portillo y Pacheco's translator>for our development, and this surplus will be exported. <v José López Portillo y Pacheco's translator>On both of these points we are certain that the plans we are drawing up <v José López Portillo y Pacheco's translator>will permit us in the following years to solve the basic <v José López Portillo y Pacheco's translator>problems of the country, basically the <v José López Portillo y Pacheco's translator>unemployment. <v Narrator>Oil dependent countries such as the United States and Japan are anxiously anticipating <v Narrator>the continued development of the Mexican oil industry.

<v Narrator>Many feel that Mexico's huge reserves will buy the time needed to refine alternative <v Narrator>energy sources. During the next 60 minutes, we'll look at the immediate effects of <v Narrator>the Blowout and Mexico's reaction to its newfound wealth. <v Announcer>Blowout, a special report. <v Narrator>Good evening. I'm Susan Wright. During the first days, the Blowout disaster news accounts <v Narrator>from the well site were sketchy at best. <v Narrator>Terse reports indicated that the runaway well called Ixtoc 1 was one of 18 <v Narrator>wells in the Bay of Campeche belonging to Pemex, Mexico's nationalized oil company. <v Narrator>No one imagined that the Blowout would be uncappable or that the resulting spill would <v Narrator>become the largest ever recorded. <v Narrator>Oil gushed from the ocean floor at the rate of 30,000 barrels a day. <v Narrator>On June 27th oil firefighter Red Adair and his crew managed to deactivate <v Narrator>the flow from the well. An hour later, it blew out again. <v Narrator>Adair immediately called for the drilling of two relief wells.

<v Narrator>These wells would intercept the crude and divert it to nearby tankers. <v Narrator>Pemex officials cautioned, however, that the relief wells would not be in operation <v Narrator>before early fall. In the meantime, 2 million barrels of crude could be expected <v Narrator>to spill into the Gulf in July. <v Narrator>Owners of the drilling rig presented a theory explaining the cause of the blowout. <v Narrator>On June 3rd the drill bit had actually penetrated a formation containing nearly 800 <v Narrator>million barrels of oil. Once the bit hit this open space. <v Narrator>The drilling mud used to send residue to the surface streamed out of the drill shaft. <v Narrator>Drilling stopped immediately. <v Narrator>After a period of time, workers on the rig started to withdraw the drill bit to assess <v Narrator>the problem as the withdrawal began, Blowout stage 1 was reached. <v Narrator>The drilling pipe was raised to the upper sections of the rig. <v Narrator>The thicker drill collar was elevated to a height just above the surface of the water. <v Narrator>Unfortunately, the drill caller was at the same level as the standard blowout protector, <v Narrator>or BOP when stage 2 began, two sections of the <v Narrator>drill pipe had stuck together and workers were unable to pull all of the pipe onto the

<v Narrator>rig. The remaining drill pipe started banging against the rig. <v Narrator>The resulting sparks ignited natural gas that had flowed through the drill shaft to the <v Narrator>surface. Normally, the blowout preventer would have sheared off the drilling pipe <v Narrator>and stopped the flow of gas. But the preventer was not designed to cut pipe as thick <v Narrator>as the drill collar, the fire raged out of control, the derrick started to melt down, <v Narrator>and the spider deck ignited. <v Narrator>Workers were forced to abandon the rig. <v Narrator>The fire continued to spread and the derrick completely melted away. <v Narrator>The remaining pipe on the rig slid into the water, knocking the BOP out of line by <v Narrator>about 10 degrees. Red Adair's efforts had failed because the preventer was <v Narrator>out of skew. He was able to cap the top of the BOP. <v Narrator>But within an hour, the pressure groups so intense that oil and gas began to flow <v Narrator>directly from the floor of the bay. <v Narrator>Capping the gusher was now virtually impossible. <v Narrator>Once Red Adair's efforts failed, grim reality set in. <v Narrator>Oil was still spewing from the well at a rate of 30,000 barrels a day.

<v Narrator>Pemex officials were not only unable to cap the well, they were also unable to contain <v Narrator>the northward flow of the spill. <v Capt. Charles Corbett>On several occasions during this whole period of time, the National Response Team has <v Capt. Charles Corbett>gone on record through the Department of State to Mexico, that we'd be happy to provide <v Capt. Charles Corbett>any assistance that we could. <v Capt. Charles Corbett>For a good while, Mexico used what they consider <v Capt. Charles Corbett>to be the best in industry versus the best in government approach. <v Capt. Charles Corbett>So we were not requested to participate in Mexico until fairly well <v Capt. Charles Corbett>on in the spill. <v Narrator>Captain Charles Corbett of the U.S. Coast Guard and Ken Bigling of the Environmental <v Narrator>Protection Agency are cochairman of the National Response Team. <v Narrator>The national team is a policymaking body that responds to spills of oil and other <v Narrator>hazardous materials. <v Capt. Charles Corbett>When we decided that the oil, in fact, was going to reach the Texas coast, <v Capt. Charles Corbett>the predesignated on scene coordinator began to gear up for just such an occurrence. <v Capt. Charles Corbett>He identified equipment throughout the country, people that he might use to respond to

<v Capt. Charles Corbett>the spill. Transportation corridors that he might use to get the equipment <v Capt. Charles Corbett>there and so forth. <v Narrator>In this case, the predesignated on scene coordinator was Coast Guard Lieutenant Commander <v Narrator>Jim Paskewich. <v Jim Paskewich>The primary areas that the scientific assessment team determined <v Jim Paskewich>had to be protected at all costs was essentially Laguna Madre. <v Jim Paskewich>In other words, everything behind the barrier islands was <v Jim Paskewich>very, very sensitive from an ecological viewpoint that had <v Jim Paskewich>to do with the estuaries, which <v Jim Paskewich>really are spawning grounds for shrimp, which is a major industry in the state <v Jim Paskewich>of Texas here. <v Jim Paskewich>Many, many juvenile species are bred in Laguna Madre. <v Jim Paskewich>There are also some very sensitive plant life there. <v Jim Paskewich>And all indications show that that was the area that had to be protected. <v Jim Paskewich>And our response strategy then was to examine how we could best <v Jim Paskewich>accomplish that. And what we found is that this type of beach

<v Jim Paskewich>in the affected area is very hard packed. <v Jim Paskewich>And if oil did come ashore, the ecological damage <v Jim Paskewich>in comparison with it landing on the beach was drastically less <v Jim Paskewich>than if it showed up in these backwaters in Laguna Madre. <v Jim Paskewich>Therefore, we decided that the best way to do it was to protect all the inlets. <v Jim Paskewich>In other words, if we mobilized men and material and equipment so to stop <v Jim Paskewich>the oil from going through the inlets that allowed the oil to <v Jim Paskewich>hit the beach and clean and clean up the oil when it was on the beach as necessary. <v Jim Paskewich>That would essentially do the- would be the most productive from an environmental <v Jim Paskewich>viewpoint and also financial. <v Narrator>The Coast Guard strategy proved successful as far as the valuable spawning grounds are <v Narrator>concerned. What little oil did see past the barrier islands was cleaned up immediately. <v Narrator>Other forms of wildlife in the area were only minimally disturbed. <v Bob Whistler>Initially, it was the things we did notice,

<v Bob Whistler>whereas the fact that the bird life seemingly seemed to disappear. <v Bob Whistler>And this was pronounced in those birds that feed primarily along the source <v Bob Whistler>zone, and the sanderlings, and the, the willets itself <v Bob Whistler>and these sorts of birds. <v Bob Whistler>We didn't know what happened to them, and we were worried <v Bob Whistler>that perhaps they may either have ingested oil or oily products <v Bob Whistler>or something, and they just disappeared. <v Bob Whistler>We found that apparently they begin to disperse due to this oil covering to <v Bob Whistler>different other similar areas. <v Narrator>Bob Whistler is the chief naturalist at the Padre Island National Seashore. <v Narrator>His office is responsible for protecting and maintaining the beaches and wildlife of the <v Narrator>Padre Island National Park. <v Bob Whistler>The impact on the invertebrates is something

<v Bob Whistler>that is very subtle. There wasn't enough oil coverage <v Bob Whistler>for a long enough time that we feel that there was any impact there <v Bob Whistler>in any sort of substantial amount. <v Bob Whistler>We don't know yet because this is still going on. <v Bob Whistler>There was some impact from some of the, uh, the the <v Bob Whistler>birds that feed out in the open Gulf. <v Bob Whistler>And because they feed out there, they were more prone to be affected <v Bob Whistler>by the oil, and were, than some of these other birds. <v Bob Whistler>Some of the blue-faced booby's and some of these other kinds of birds we found washed in <v Bob Whistler>that were covered with oil and these were primarily the only <v Bob Whistler>ones that we had any problem with it were were oil-covered and there <v Bob Whistler>were too many of those. I would say there's perhaps about a half a dozen or so. <v Bob Whistler>And there was a Fish and Wildlife team

<v Bob Whistler>and center established to take care of oil birds. <v Bob Whistler>So there was provisions made <v Bob Whistler>for this type of thing. <v Bob Whistler>So we didn't have the impact that we were really greatly concerned with in <v Bob Whistler>this regard. <v Narrator>But while the spawning grounds and wildlife were protected, the Padre Island beaches <v Narrator>took a beating. On August 6th, large concentrations of tar balls began <v Narrator>drifting ashore. On August 15th, oil slicks of varying size and density <v Narrator>landed on the beaches. <v Jim Paskewich>The problem here is you have hundreds of miles of coast that you have to look at <v Jim Paskewich>and protect and deploy equipment and <v Jim Paskewich>try to clean up. So the magnitude of the problem is <v Jim Paskewich>much, much more than just having an isolated area where once the event <v Jim Paskewich>has happened, you go in, you clean it up, you <v Jim Paskewich>?inaudible? it off or some other kind of devices to isolate it.

<v Jim Paskewich>But here, it's completely different. You, you have an impact, <v Jim Paskewich>you go, you clean it up. <v Jim Paskewich>And maybe 2 days later there's the same area you just clean is reimpacted. <v Jim Paskewich>And those are the type of thing you have to face. <v Jim Paskewich>So for a while there, it looked like a never ending battle. <v Narrator>The beaches of South Padre Island are prime tourist attractions. <v Narrator>During a normal summer season, people from all over the world come to bask in the sun and <v Narrator>drift in the warm Gulf waters. <v Narrator>The tourist trade usually accounts for nearly 50 million dollars in revenue. <v Narrator>But this summer was different. Heavy concentrations of oil were present on South Padre <v Narrator>beaches for only about two weeks in mid-August. <v Narrator>Even so, negative publicity caused business to drop off severely long before the <v Narrator>first slick washed ashore. <v Paul Cunningham>Tourism has been affected by virtue of the publicity the oil spill because <v Paul Cunningham>it's human nature. You don't want to take your vacation somewhere where it might not <v Paul Cunningham>be as enjoyable as you thought it would be, or that would be spoiled by virtue of the

<v Paul Cunningham>beaches not being usable. <v Paul Cunningham>I wouldn't want to go someplace and spend 150 dollars a day for my vacation <v Paul Cunningham>with my family, with the thought that we couldn't enjoy the facilities. <v Paul Cunningham>And so mostly it's been fear that has affected tourism down here. <v Paul Cunningham>Not the oil spill itself. <v Narrator>Whether it was fear or the actual presence of oil. <v Narrator>The incident had a drastic impact on local business. <v Ralph Thompson>Business fell off as much as 70 percent of what it would have been. <v Ralph Thompson>So I say we've lost certainly several millions of dollars in lost revenue <v Ralph Thompson>as a direct result of the spill and the publicity. <v Skipper Ray>I was running forty 45 a month <v Skipper Ray>and I expected to run at least 30 <v Skipper Ray>in the month of September and probably <v Skipper Ray>40 in August, in which I did I think 15 trips in August <v Skipper Ray>and something like 5 or 6 in September. <v Skipper Ray>Fishing was good, but there wasn't nobody here to take.

<v Jimmy Halliburton>We were down about 70 percent in August, 50 percent <v Jimmy Halliburton>in September, and we're just now into October so <v Jimmy Halliburton>we don't really have any good figures yet. <v Jimmy Halliburton>We've cut our hours back, employees back. <v Jimmy Halliburton>We're just more or less on a skeleton crew, just enough to man the place. <v Jimmy Halliburton>We're spending all of our personal money trying to keep it going because I just, <v Jimmy Halliburton>I was determined not to close. <v Jimmy Halliburton>And but if they don't do something quick, well, it's <v Jimmy Halliburton>we're gonna have to do something because I can't you know, you <v Jimmy Halliburton>just finally run out of money. <v Narrator>The only type of financial help that has been offered so far is low interest Small <v Narrator>Business Administration loans. South Padre residents are quick to point out, however, <v Narrator>that in most cases these loans just are not enough.r <v Ralph Thompson>Here is a situation where people are simply borrowing more money to <v Ralph Thompson>stay alive. Money that's going to have to be repaid. <v Ralph Thompson>It's just a matter of lower interest than they would ordinarily pay.

<v Ralph Thompson>The small businessman, it may be his salvation to carry him through, <v Ralph Thompson>but he's still going to be faced with paying those moneys back. <v Ralph Thompson>And so I don't think it's certainly the answer in terms <v Ralph Thompson>of what's needed here at South Padre Island and interest. <v Paul Cunningham>All it is, is a cheaper interest rate compared to commercial lending. <v Paul Cunningham>And it could be maybe a 4 or 5,000 dollar savings. <v Paul Cunningham>All it would be in 1 year. <v Paul Cunningham>And a loan is like anything else, you've got to pay it back. <v Paul Cunningham>So I'm really not out to borrow more money to pay back next year. <v Jimmy Halliburton>They told us that if there was any lag in it, they would have people directly from <v Jimmy Halliburton>Washington down here to help us to expedite this. <v Jimmy Halliburton>And they haven't done it. They've sent farm letters out which say they're treating <v Jimmy Halliburton>more like just a small business loan, not an economic disaster loan. <v Narrator>The lack of immediate help and attention from Washington has left many people on South <v Narrator>Padre feeling like the federal government has forgotten them.

<v Narrator>Some think that the recent U.S. Mexican oil sales negotiations are the reason for <v Narrator>Washington's lack of support. <v Paul Cunningham>I can at times feel like I'm a pawn in a big game, so to speak. <v Paul Cunningham>I have a feeling that they're skirting South Padre island and the issue of the oil <v Paul Cunningham>spill in order to get bigger fish. <v Paul Cunningham>And as a result of that, I don't really expect to see any relief via President Carter <v Paul Cunningham>or my federal government, because they're negotiating with Mexico for energy. <v Paul Cunningham>I have a feeling we're gonna probably just be passed up in the whole shuffle. <v Kirby Lilljedahl>You know, ?inaudible? <v Kirby Lilljedahl>Washington is virtually impossible in <v Kirby Lilljedahl>the short term. <v Kirby Lilljedahl>We don't know what what's going on with respect to our State Department and their State <v Kirby Lilljedahl>Department involving the gas and oil negotiations <v Kirby Lilljedahl>as it may have affected the oil spill. <v Kirby Lilljedahl>We're just not privy to that so we don't know.

<v Kirby Lilljedahl>Probably, we probably feel <v Kirby Lilljedahl>that our problem was certainly not number 1 on <v Kirby Lilljedahl>the State Department's priority. <v Jimmy Halliburton>I think more or less, the federal government is more interested in Mexico, <v Jimmy Halliburton>in their dealings with their government than they are with us, because the only contact <v Jimmy Halliburton>that we've had with the federal government in a way down here is the Small Business <v Jimmy Halliburton>Administration and Senator Tower's office. <v Jimmy Halliburton>We've had or myself have had no <v Jimmy Halliburton>dealings with anyone else in the federal government. <v Narrator>Officials in Washington, however, feel like the federal government has done a lot to <v Narrator>alleviate the problems caused by the spill. <v Narrator>Robert Krueger is ambassador at large designate for Mexican affairs. <v Narrator>He has participated in the sales negotiations for several months. <v Narrator>He states that no type of trade off was arranged. <v Robert Krueger>I've participated ever since July in all of the discussions regarding natural gas <v Robert Krueger>that were underway between our governments.

<v Robert Krueger>The question of the oil spill never at any time arose in any of those <v Robert Krueger>discussions. There was no sort of quid pro quo tradeoff. <v Robert Krueger>We simply negotiated with them in a commercial transaction for the outlines of <v Robert Krueger>a natural gas agreement. What has been done on the federal level is in the first <v Robert Krueger>instance, the federal government has spent something like 75,000 dollars a day <v Robert Krueger>from using funds from the revolving fund or in order to help cover cleanup <v Robert Krueger>costs. I think that's a significant amount. <v Robert Krueger>It is not an amount that covers all damages, perhaps that might be brught, <v Robert Krueger>but there's probably no way of assessing all that in advance. <v Robert Krueger>In other cases, there's legislation that still may be brought before the Congress <v Robert Krueger>to address specifically this concern and damages that individuals may have suffered <v Robert Krueger>because of this. We are dealing right now with the Justice Department and the <v Robert Krueger>legal section of State Department to see what the options are for the U.S. <v Robert Krueger>government in terms, legally what our options are, in terms of <v Robert Krueger>addressing this question. But among other things, there is a

<v Robert Krueger>deficiency, as I understand it, or a lack of any very extensive <v Robert Krueger>international existing body of law for questions of this kind. <v Narrator>This is not the first time that the United States has been involved with Mexico in a <v Narrator>controversy of this kind. <v Narrator>In the early 1960s, a serious problem concerning the quality of water flowing <v Narrator>from the Colorado River into northern Mexican farmlands arose. <v Narrator>This situation is now being used as the basis for Mexico's refusal to compensate <v Narrator>Americans affected by the spill. <v T.R. Martin>The problem begun in 1961 <v T.R. Martin>when by an unpredicted confluence of circumstances <v T.R. Martin>the salinity of the water we were delivering to Mexico more than <v T.R. Martin>doubled. <v T.R. Martin>We were surprised. But Mexico, of course, was at <v T.R. Martin>the burdened end and complained at once. <v Narrator>T.R. Martin is a special assistant in the State Department's Mexican affairs office.

<v Narrator>He has also acknowledged as the department's foremost expert on the Mexican-American <v Narrator>salinity crisis. <v T.R. Martin>It was our belief that agricultural drainage is not a contaminant <v T.R. Martin>under international law. <v T.R. Martin>Many agricultural areas were draining into the Colorado River up and <v T.R. Martin>down the river. <v T.R. Martin>And secondly, because of the provision in the treaty that Colorado <v T.R. Martin>River water might come from any and all sources. <v T.R. Martin>We believed that the agricultural drainage was a legitimate source <v T.R. Martin>and that hence this water was not being delivered contrary to the treaty, <v T.R. Martin>but rather that Mexico should accept it under the treaty that began <v T.R. Martin>the problem. <v Narrator>The treaty of which Martin speaks was concluded by the United States and Mexico in <v Narrator>1944. According to the treaty, the U.S. <v Narrator>is obligated to deliver to Mexico 1.5 million acre feet of water a year <v Narrator>from the Colorado River.

<v T.R. Martin>Mexico contended that it had a deleterious effect <v T.R. Martin>almost from the very beginning. <v T.R. Martin>And in the note of which it may when, in which it made complaint about <v T.R. Martin>the quality of the water, it sought damages. <v T.R. Martin>We, of course, having denied the grounds for complaint, did not acknowledge <v T.R. Martin>our liability. <v José López Portillo y Pacheco>[Speaking Spanish, using translator's voice to avoid crosstalk.]. <v José López Portillo y Pacheco's translator>Mexico had to suffer great grave damages in <v José López Portillo y Pacheco's translator>the valley of Mexicali due to <v José López Portillo y Pacheco's translator>the actions taken on the Colorado River <v José López Portillo y Pacheco's translator>to wash the American soil with the same <v José López Portillo y Pacheco's translator>treaty on the waters that belong to us <v José López Portillo y Pacheco's translator>as ?inaudible?. <v José López Portillo y Pacheco's translator>They used this water to wash the American soil <v José López Portillo y Pacheco's translator>as water included in the treaty, they delivered to use highly salinized

<v José López Portillo y Pacheco's translator>water which made the fertile valley of Mexicali <v José López Portillo y Pacheco's translator>very salty. <v José López Portillo y Pacheco's translator>This ?inaudible? 2 things for us, <v José López Portillo y Pacheco's translator>they simply transfered the salt from one side to the other and they did not deliver <v José López Portillo y Pacheco's translator>usable water to us as was forseen in the treaty. When we made a claim, <v José López Portillo y Pacheco's translator>the United States refused to do anything about it. <v José López Portillo y Pacheco's translator>Now the situation has changed. <v José López Portillo y Pacheco's translator>It's possible that the oil that <v José López Portillo y Pacheco's translator>came out of this stock may have polluted some American coastline <v José López Portillo y Pacheco's translator>and perhaps it caused some damage. <v José López Portillo y Pacheco's translator>In the first place in Mexicali we had reasons but these were not turned into

<v José López Portillo y Pacheco's translator>a right. In the case of ?inaudible? and the coastline, <v José López Portillo y Pacheco's translator>there might be reasons for it, but there's also no right. <v Robert Krueger>But they also know that we're prepared to sit down and discuss these matters with Mexico. <v Robert Krueger>Mexico wants to sit down and discuss them with us on environmental questions, we're <v Robert Krueger>prepared to open them up past as well as future with the Mexican <v Robert Krueger>government. <v José López Portillo y Pacheco>[Speaking Spanish, using translator's voice to avoid crosstalk.] <v José López Portillo y Pacheco's translator>We can solve any problem of this type in the future, that is what is desirable. But at <v José López Portillo y Pacheco's translator>the present moment it does not seem desirable, it <v José López Portillo y Pacheco's translator>is undue and not dignified <v José López Portillo y Pacheco's translator>to assume that we are forced to <v José López Portillo y Pacheco's translator>do something that our American friends did not wish to do it when they had- when it was <v José López Portillo y Pacheco's translator>their turn.

<v José López Portillo y Pacheco's translator>A right, after all, is a recognition of the golden rule. <v José López Portillo y Pacheco's translator>Don't ask from another something you are not willing to give up. <v José López Portillo y Pacheco's translator>It is very simple. <v Narrator>Now that the shoe is on the other foot, the State Department is virtually powerless as <v Narrator>far as compensation is concerned. <v Narrator>As a result, south Texas coast residents have had to fend for themselves. <v Paul Cunningham>We had no other alternative. We tried to pursue a course of relief that we could <v Paul Cunningham>think of. And everywhere, everywhere we turn, we ran into a brick wall. <v Paul Cunningham>And so the law lawsuit was more of an act of frustration on our part of something we <v Paul Cunningham>needed to do. Kind of like the last step. <v Paul Cunningham>This was the last remedy we knew of. <v Paul Cunningham>Not necessarily the ideal remedy. The only 1 left to us. <v Paul Cunningham>The beaches have basically been cleaned within the town of South Padre Island. <v Paul Cunningham>I think you all have seen that yourself. <v Paul Cunningham>And so that part of it is over. <v Paul Cunningham>And now what do we do to recover the economic damages that we've received and

<v Paul Cunningham>the lawsuits the only way way I know of it, because Mexico isn't up here handing out <v Paul Cunningham>checks. The federal government is not down here handing out checks. <v Paul Cunningham>The state government's not down here handing out checks. <v Paul Cunningham>The local town, of course, has suffered economic loss also because it's my business <v Paul Cunningham>is hurt, so goes the town's revenue because they collect their revenue from <v Paul Cunningham>sales tax and hotel occupancy tax. <v Paul Cunningham>In fact their major source of revenue is from tourism, not <v Paul Cunningham>from ad valorem tax. <v Paul Cunningham>And everybody has been injured as a result of it in terms of economic losses. <v Narrator>The city of South Padre Island is 1 of the several interests that have filed intent to <v Narrator>sue the companies involved with the drilling of Ixtoc 1. <v Narrator>Pemex owner and operator of the well, Tomago, the private Mexican company <v Narrator>contracted by Pemex to drill the well, and Sedco the oil rig leasing firm founded <v Narrator>by Texas Governor Bill Clements some 30 years ago. <v Narrator>But it is Sedco's actions which prompted the most controversy. <v Narrator>Harry Hubbard, president of the Texas AFL-CIO, has stated that Sedco may be engaged

<v Narrator>in a cover up. The union has indicated it will sue all 3 parties. <v Harry Hubbard>I think, and I think most other people believe that there <v Harry Hubbard>has been an effort to cover up the <v Harry Hubbard>liability of Sedco from the very beginning. <v Harry Hubbard>And I've said before, from the very beginning, the governor said, <v Harry Hubbard>oh, you know, nothing to cry about, don't cry over spilled milk and all those kind of <v Harry Hubbard>flying. Most recently, I saw a quote in the paper where he was blaming the <v Harry Hubbard>attorney general and myself, probably the state <v Harry Hubbard>Democratic Party chairman, for trying to make a political issue out of a very, <v Harry Hubbard>very serious disaster. <v Harry Hubbard>So from the time it started until today, in the words of our governor, there <v Harry Hubbard>was nothing to talk about. Now it's a very serious disaster. <v Harry Hubbard>So I think it's very obvious why did they pull the rig out and <v Harry Hubbard>sink it, you know, so early?

<v Harry Hubbard>Why did they go well, they were saying that we're not responsible, we're not liable <v Harry Hubbard>and get a limitation on liability and get a deadline on the date that anyone can sue <v Harry Hubbard>for libality. <v Narrator>Following the blowout of the Ixtoc 1, Sedco maintain that it was exempt from any <v Narrator>liability. But subsequent events throughout the summer challenged the credibility of <v Narrator>Sedco's claim. First, company officials authorized the disposal of the suspect rig <v Narrator>in the waters 200 miles east of the well site. <v Narrator>Next, doubts arose concerning the actual number of Sedco employees aboard the rig <v Narrator>at the time of the blowout. And finally, in September, Sedco asked a Houston federal <v Narrator>court to limit any liability that might be found to 300,000 dollars. <v Narrator>By asking the court for this limitation. <v Narrator>Sedco forced parties wanting to sue to file their intent to do so before the court <v Narrator>determined cutoff date of October 23rd, 1979. <v Harry Hubbard>For so far as what prompted this to do was that <v Harry Hubbard>when Sedco went to court, and limited liability

<v Harry Hubbard>when they set a deadline is when suits to be filed and then when they quietly <v Harry Hubbard>drove the equipment out to past the inter-continental shelf and sunk it <v Harry Hubbard>so there wouldn't be any evidence. It was very obvious that someone had to do something. <v Narrator>Texas Attorney General Mark White has monitored the situation very closely all summer. <v Mark White>That was a decision that was made, which at the first instance <v Mark White>was suggested that due to the fact that the rig was so terribly <v Mark White>damaged and was unseaworthy that they shut the rig. <v Mark White>Later, we discovered they pulled the rig, the unseaworthy rig, some 200 <v Mark White>miles before they sunk it and they sunk it in the very middle of the Gulf of Mexico. <v Mark White>I thought this was unusual. <v Steve Mahood>The vessel was structurally damaged. <v Steve Mahood>It was structurally unsound. <v Steve Mahood>All of the drilling equipment had been lost and had fallen overboard. <v Steve Mahood>And the vesicle, and the vessel was apparently a total

<v Steve Mahood>loss. The day after the fire occurred, however, <v Steve Mahood>our insurance underwriters and we ourselves sent surveyors and engineers and <v Steve Mahood>structural engineers down to the site, and all of these people boarded the <v Steve Mahood>unit and studied it and ran metal tests <v Steve Mahood>and discovered what equipment had been lost. <v Steve Mahood>And after 2 or 3 week study thereafter <v Steve Mahood>the conclusion was drawn by not only us but by independent parties and iour insurance <v Steve Mahood>underwriters, that the vessel had no value and it was, in fact, a derelict <v Steve Mahood>wreck. And since it had no value, we were and <v Steve Mahood>we were spending about 16,000 dollars a day with two tugboats and personnel just standing <v Steve Mahood>by. Making sure that it didn't get away or make sure that if <v Steve Mahood>in the event that a tropical storm came through, that the vessel didn't break up in some <v Steve Mahood>fashion. We wanted to get rid of this liability.

<v Steve Mahood>It was no longer an asset to anyone. It was merely a liability and a threat to <v Steve Mahood>navigation. And certainly a hazard, if it did break up, <v Steve Mahood>might run into another rig that was down there, run ashore and be very expensive <v Steve Mahood>to remove. So the best thing for all parties was to take it out into <v Steve Mahood>very deep water where it could no longer be a hazard to anyone and sink it, which is what <v Steve Mahood>we did. <v Harry Hubbard>Sedco said we're not liable. <v Harry Hubbard>In fact, they said, they said in the beginning <v Harry Hubbard>that they didn't have any employees on the rig. <v Harry Hubbard>Then they had 3. In the final analysis, they had had 7. <v Harry Hubbard>So where does negotiations begin when you can't even get a straight answer out of the <v Harry Hubbard>people that seemingly are responsible for it? <v Mark White>I think the analysis that we've done so far indicates that there is going to be <v Mark White>fault to be found at every level. It seems that there are <v Mark White>very suspicious things that have occurred. <v Mark White>The first we learned was that there was no people

<v Mark White>from the Sedco Company only drilling rig. <v Mark White>Next, we hear that there were maybe 3 or 4 there. <v Mark White>It turns into 7. <v Steve Mahood>I can probably take personal responsibility for that because back in <v Steve Mahood>early August, I was sitting in my office and received a telephone call <v Steve Mahood>from a newspaper reporter, and I've even forgotten which reporter <v Steve Mahood>it was. And he asked me how many men we had on board the <v Steve Mahood>Sedco vessel that was involved in Mexico. <v Steve Mahood>And at that time, I honestly did not know how many, but I thought there were about <v Steve Mahood>4. And I told him that there were about 4, but <v Steve Mahood>I wasn't sure exactly how many. <v Steve Mahood>And the next day he printed the story and printed it that it was exactly 4. <v Steve Mahood>And then other newspaper articles picked that up. <v Steve Mahood>And from then on, it was exactly 4 until <v Steve Mahood>very soon thereafter we had a head count and determined that it was exactly <v Steve Mahood>7. So that's how the discrepancy began.

<v Mark White>I think certainly that there are so many unanswered questions as yet as to the <v Mark White>condition of the rig, who had actual control over the rig, who was- <v Mark White>there was also this delay for apparently 2 days almost, in which they were <v Mark White>trying to make a decision on what to do about the loss of circulation <v Mark White>in the wwll. All of these things and the decisions that were ultimately made, <v Mark White>which have been disclaimed by Sedco, Sedco has <v Mark White>certain responsibilities that overshadow <v Mark White>the contractual relationships which you're trying to stand behind. <v Steve Mahood>Our people on board were basically there to maintain <v Steve Mahood>our equipment, and that was their basic charge to be sure that our equipment <v Steve Mahood>was properly maintained and taken care of. <v Steve Mahood>And certainly they were there to be available to provide <v Steve Mahood>any assistance that might be asked of them in terms of advice or consultation.

<v Steve Mahood>And that's primarily the role that they had there. <v Narrator>The city of South Padre made its intentions known shortly after Sedco asked for the <v Narrator>limitation of liability. <v Kirby Lilljedahl>With the following suit by Sedco that we could no longer sit and, and <v Kirby Lilljedahl>take no action. <v Kirby Lilljedahl>If the federal court established their liability at the 300,000 dollar level, which is <v Kirby Lilljedahl>their request. <v Kirby Lilljedahl>Obviously, our losses are much greater than that. <v Kirby Lilljedahl>So the <v Kirby Lilljedahl>?inaudible? here felt that suit was necessary to protect everybody's <v Kirby Lilljedahl>interests. We joined the suit involving, <v Kirby Lilljedahl>well, it's a county class action suit <v Kirby Lilljedahl>whereby the city represents the classes of the government, <v Kirby Lilljedahl>be it navigation district, city or whatever. <v Kirby Lilljedahl>That was filed approximately 3 weeks ago.

<v Kirby Lilljedahl>To the suit in numbers, as I can recall, was 100 million dollars. <v Narrator>On Thursday, October 18th Attorney General White announced the state of Texas is suing <v Narrator>Sedco and Tomago for 10 million dollars in damages to the Texas ecology and for cleanup <v Narrator>costs. Governor Clements' only reaction was to say, I don't think his suit is good <v Narrator>against anybody. The governor's response came as no surprise. <v Narrator>Throughout the summer, he and White have clashed repeatedly over the advisability of <v Narrator>suing the parties involved. The governor feels very strongly that the situation might be <v Narrator>best handled by federal officials. <v Governor Clements>I have consistently and constantly and forevermore said, <v Governor Clements>let's be quiet and let the State Department and the Foreign Ministry of Mexico <v Governor Clements>negotiate. And all this chest thumping and talking about <v Governor Clements>suing Mexico is not constructive and not helpful in that regard. <v Narrator>On August 9th, the governor said it would be inopportune for the state to sue Mexico <v Narrator>over possible oil damage. The attorney general maintained that this and other remarks

<v Narrator>made by the governor spoiled chances for out-of-court negotiations with Mexico. <v Narrator>In short, he said, the governor had taken away the state's trump card. <v Mark White>I think that was the whole reason for my request that <v Mark White>he not continually repeat to officials in Mexico with Texas would not <v Mark White>sue over an oil spill. <v Mark White>This is simply not the way to engage in negotiations over <v Mark White>the payment of damages. <v Mark White>I felt it was unfair both to the public in Mexico as well as to the people of <v Mark White>Texas in the sense that misleading information should not be <v Mark White>issued through an official source. <v Mark White>I think it directly resulted in positions that would not <v Mark White>have been taken by Mexico. <v Governor Clements>Let me make one thing absolutely clear to you and everybody else. <v Governor Clements>By the Texas Constitution, I am the chief executive <v Governor Clements>officer of the state of Texas, and the attorney general is my councilor <v Governor Clements>or my lawyer, so to speak.

<v Governor Clements>I have been in the business environment now for some 4 years as chief executive officer <v Governor Clements>of an enterprise, and I reserve <v Governor Clements>the right, as chief executive officer to express my opinion on any <v Governor Clements>subject that I deem appropriate for me to have an opinion. <v Governor Clements>And I also reserve the right to take the advice or not take the advice <v Governor Clements>of my lawyer. That's what a lawyer as far as to give advice, the chief executive officer <v Governor Clements>is in his office to make decisions. <v Governor Clements>And so when I decide that I will either accept his opinions and agree <v Governor Clements>with him, I'll say so. And when I don't accept his opinions and his advice <v Governor Clements>and I don't agree with him, I reserve the right to say so. <v Governor Clements>So, you know, I'm not going to be in default on that to him or anybody else. <v Narrator>Many people speculate that the governor's reaction is motivated in part by his <v Narrator>connections with Sedco. Before his election the governor was president and chief <v Narrator>executive officer of the drilling firm. <v Narrator>The company is currently headed by his son, Gil.

<v Governor Clements>When I divorced myself from the company that I founded <v Governor Clements>actually over 30 years ago and had always been the chief executive <v Governor Clements>of that company, when I left the company and put my stock in <v Governor Clements>a blind trust and resigned, I did it totally. <v Governor Clements>And it's not the sort of thing that you can dip in and dip out of. <v Governor Clements>People don't seem to understand that. It's kind of like a surgeon who'd get halfway <v Governor Clements>through an operation and leave go off to play golf or do something else. <v Governor Clements>Then come back a week later and say, well, I will take up the operation again. <v Governor Clements>You can't do that. And so I don't have anything to do with the operation of the company. <v Governor Clements>I don't know what they're doing and I don't know how they do it. <v Governor Clements>And I really am not interested. <v Steve Mahood>After Governor Clements had made his trip to the South Texas <v Steve Mahood>coast to investigate personally, he came to the office here 1 day <v Steve Mahood>he happened to be in town and came by here. And I was in a meeting with him with 3 or 4 <v Steve Mahood>other people for about 10 or 15 minutes.

<v Steve Mahood>And most of that time was really spent talking about what we understood to be Pemex's <v Steve Mahood>plans to put the funnel or the cone over the well to stop <v Steve Mahood>the flow of the oil onto the surface of the ocean. <v Steve Mahood>But that was the only meeting I've had with him in connection with this matter. <v Narrator>Perhaps the greatest lesson from this experience is that the United States and Mexico <v Narrator>need to formulate an agreement to prevent future misunderstandings. <v Narrator>Offshore blowouts are nothing new. Mexico has indicated it intends to pursue a rigorous <v Narrator>hydrocarbon development program in the Bay of Campeche. <v Narrator>The probability of future spills in southern Gulf waters will increase proportionately. <v Offcamera scientist>There's no nation absolutely capable or capable of cleaning up <v Offcamera scientist>absolutely all oil spilled on the high seas in the quantities that we saw in the Gulf of <v Offcamera scientist>Mexico. <v Ken Biglane>We encourage the use of the planning mechanism <v Ken Biglane>to address large and impactive spills <v Ken Biglane>with adjoining nations, again, it reinforces our belief that a planning mode is

<v Ken Biglane>most essential if one is to make any sense at all out of protecting the environment <v Ken Biglane>following one of these large, large spills. <v Robert Krueger>It's my understanding that we first approached Mexico several years ago suggesting that <v Robert Krueger>2 countries might try to work out a treaty in doing something of this kind. <v Robert Krueger>We presented language to the Mexican government, I'm told, in April of 1978 <v Robert Krueger>as initial language that we would propose for a treaty between the 2 countries. <v Robert Krueger>We have not, to my knowledge, as yet heard from them. <v José López Portillo y Pacheco>[Speaking Spanish, using translator's words as to avoid crosstalk.] <v José López Portillo y Pacheco's translator>We are willing to agree in future cases in order that <v José López Portillo y Pacheco's translator>both countries may be obligated to take preventive <v José López Portillo y Pacheco's translator>measures <v José López Portillo y Pacheco's translator>to correct damage whenever this should occur <v José López Portillo y Pacheco's translator>and to have systems which would <v José López Portillo y Pacheco's translator>formalize and ways of making the clean.

<v Narrator>The amount of Mexico's oil reserves staggering. <v Narrator>Figures for proven, probable, and potential reserves are constantly on the increase. <v Jorge Diaz Serrano>Our last expression of reserves was made by Mr. López Portillo in his <v Jorge Diaz Serrano>presidential speech of the 1st of September of this year. <v Jorge Diaz Serrano>And we have 45 billion of <v Jorge Diaz Serrano>proven reserves. <v Jorge Diaz Serrano>45 billion of probable reserves and <v Jorge Diaz Serrano>200 million of- 200 billion of potential <v Jorge Diaz Serrano>reserves. <v Narrator>Jorge Diaz Serrano is director general of Pemex. <v Narrator>He explains how Mexico's oil development prospects have changed since December 1976. <v Jorge Diaz Serrano>What we had in those days was a tremendous expansion program <v Jorge Diaz Serrano>from 6 billion we were expanding <v Jorge Diaz Serrano>our reserves to 11 billion in that particular month, and we <v Jorge Diaz Serrano>announced that we would want to reach a production from 900,000

<v Jorge Diaz Serrano>barrels per day, that we had to 2 million and a quarter, 2 <v Jorge Diaz Serrano>million, 250,000 barrels per day in 19 hundred and 82. <v Jorge Diaz Serrano>We started our program. <v Jorge Diaz Serrano>We found the geology and the discoveries more <v Jorge Diaz Serrano>to abundant or more prolific. <v Jorge Diaz Serrano>And we decided to expand further our program by <v Jorge Diaz Serrano>bringing the production of 19 hundred and 82 to 19 hundred and 80. <v Narrator>While Mexico's oil industry has progressed more swiftly than perhaps even he had <v Narrator>imagined, president López Portillo has been careful not to minimize his country's other <v Narrator>resources. <v José López Portillo y Pacheco>[Speaking Spanish, using translator's audio as to prevent crosstalk.] <v José López Portillo y Pacheco's translator>We don't want to turn into the ?inaudible? <v José López Portillo y Pacheco's translator>total of our development. <v José López Portillo y Pacheco's translator>But to use it as a sort of trigger for <v José López Portillo y Pacheco's translator>our development.

<v José López Portillo y Pacheco's translator>Fortunately the country has sufficient conditions that lead us to think that this is <v José López Portillo y Pacheco's translator>possible. <v José López Portillo y Pacheco's translator>We have other ?inaudible? <v José López Portillo y Pacheco's translator>We have an interesting market. <v José López Portillo y Pacheco's translator>We have a population that has well-trained sectors to face these- And <v José López Portillo y Pacheco's translator>we have confidence in ourselves. <v José López Portillo y Pacheco's translator>The country improve previous time had an acceptable rate of <v José López Portillo y Pacheco's translator>development based <v José López Portillo y Pacheco's translator>on our sufficiency. <v José López Portillo y Pacheco's translator>This decreased in the years since '73 and '74 when we were forced to <v José López Portillo y Pacheco's translator>import. <v José López Portillo y Pacheco's translator>I believe we have sufficient conditions in order to make it possible to organize,

<v José López Portillo y Pacheco's translator>starting with petroleum, but not to depend on it. <v José López Portillo y Pacheco's translator>And to think early about a substitute of the new source of energy, which is <v José López Portillo y Pacheco's translator>not renewable. <v José López Portillo y Pacheco's translator>We believe that this is as good for the country as it is for our humanity. <v José López Portillo y Pacheco's translator>We are a frontier generation. We <v José López Portillo y Pacheco's translator>are now between 2 systems of energy. ?inaudible?must <v José López Portillo y Pacheco's translator>be very much aware so <v José López Portillo y Pacheco's translator>as not to leave an unresolvable problem for our children. <v Narrator>The average Mexican citizen has heard much about the benefits oil can bring, but only a <v Narrator>small percentage of the population has actually witnessed any immediate effects. <v Narrator>President López Portillo is determined to stabilize his country's soaring rate of <v Narrator>inflation. The president is quick to recognize that too much oil related revenue will <v Narrator>only worsen his country's economy.

<v José López Portillo y Pacheco>[Speaking Spanish, using translator's audio as to avoid crosstalk]. <v José López Portillo y Pacheco's translator>We believe that it isn't ?inaudible? <v José López Portillo y Pacheco's translator>The reserves that must ?inaudible? <v José López Portillo y Pacheco's translator>Exploitation within a national system but <v José López Portillo y Pacheco's translator>the capacity of the country to invest and to <v José López Portillo y Pacheco's translator>exploit oil. And once the <v José López Portillo y Pacheco's translator>investment has been made, we <v José López Portillo y Pacheco's translator>will only export as much as the country's economy <v José López Portillo y Pacheco's translator>is able to digest. <v José López Portillo y Pacheco's translator>So as not to bring about the worst sort of inflation <v José López Portillo y Pacheco's translator>due to financial congestion <v José López Portillo y Pacheco's translator>which would force a country that has such serious ?inaudible? <v José López Portillo y Pacheco's translator>as ours to ?inaudible? <v José López Portillo y Pacheco's translator>paradoxically have to export capital. <v José López Portillo y Pacheco's translator>?inaudible? our foreign exploitation to our economic

<v José López Portillo y Pacheco's translator>stability. <v José López Portillo y Pacheco's translator>For this reason we are establishing what we call an exploitation platform. <v José López Portillo y Pacheco's translator>At the beginning of the regime, we establish for ourselves <v José López Portillo y Pacheco's translator>to reach a certain level or platform by 1982. <v José López Portillo y Pacheco's translator>Of around 2 million, 200,000 barrels a day. <v José López Portillo y Pacheco's translator>This might increase a little. <v José López Portillo y Pacheco's translator>This goal will be achieved by 1980. <v José López Portillo y Pacheco's translator>And when we arrive there, then <v José López Portillo y Pacheco's translator>with view to the present econ- to the economy we have then, we will see what the next <v José López Portillo y Pacheco's translator>step shall be. <v José López Portillo y Pacheco's translator>We have taken great care of our economy in the world context. <v José López Portillo y Pacheco's translator> There has been a total change.

<v José López Portillo y Pacheco's translator>It is not the reserves that need the exploitation <v José López Portillo y Pacheco's translator>but the nat- but the desirability that come- that is due <v José López Portillo y Pacheco's translator>to the economy of the country. <v Narrator>Because of its abundant oil and natural gas supplies, the Mexican government's <v Narrator>responsibilities extend beyond its own borders, developed and under-developed countries <v Narrator>now up to Mexico for help in solving their energy needs. <v José López Portillo y Pacheco>[Speaking Spanish, using translator's audio as to avoid crosstalk.]. <v José López Portillo y Pacheco's translator>We have reason to propose at the United Nations, the desirability of the world plan for <v José López Portillo y Pacheco's translator>fuel. <v José López Portillo y Pacheco's translator>Where, where the needs of all countries are considered, not only of the large <v José López Portillo y Pacheco's translator>countries. The big consumers. <v José López Portillo y Pacheco's translator>All need energy <v José López Portillo y Pacheco's translator>but we do not want to have deformations of this type which would only accelerate <v José López Portillo y Pacheco's translator>disorder.

<v José López Portillo y Pacheco's translator>If we are going to consider the needs of others, <v José López Portillo y Pacheco's translator>it would be reasonable to consider them within a certain ?inaudible? <v José López Portillo y Pacheco's translator>and not ?inaudible? increase the disorder. <v José López Portillo y Pacheco's translator>We understand very well the need that the United States has <v José López Portillo y Pacheco's translator>for fuel. We also understand the needs <v José López Portillo y Pacheco's translator>of Nicaragua and Costa Rica which are small countries <v José López Portillo y Pacheco's translator>in a very unfavorable comparative position. <v José López Portillo y Pacheco's translator>We would like all of humanity to understand the need of <v José López Portillo y Pacheco's translator>ordering the passage of going from one full <v José López Portillo y Pacheco's translator>time period to another. <v José López Portillo y Pacheco's translator>Ordering and rationalizing not only the exploration, but exploitation,

<v José López Portillo y Pacheco's translator>the distribution, <v José López Portillo y Pacheco's translator>and the consumption of the present day sources of energy, basically, oil. <v Narrator>President López Portillo also recognizes that the United States is aware of Mexico's <v Narrator>burgeoning influence. <v José López Portillo y Pacheco>[Speaking Spanish, using translator audio as to avoid crosstalk.] <v José López Portillo y Pacheco's translator>As the conditions <v José López Portillo y Pacheco's translator>because Mexico's position has changed. <v José López Portillo y Pacheco's translator>And the fact is that it <v José López Portillo y Pacheco's translator>now has something that's substantially interesting to the United States. <v Robert Krueger>Well, I think that we have a changing relationship in our <v Robert Krueger>relations with Mexico. And that relationship is changing in part because Mexico is <v Robert Krueger>now the 11th largest country in the world. <v Robert Krueger>Mexico is taking an increasingly important role internationally <v Robert Krueger>or certainly in this hemisphere, but actually throughout the world. <v Robert Krueger>And during a time of a changing relationship, there are sometimes some growing pains in

<v Robert Krueger>that relationship. I think it is to U.S. <v Robert Krueger>Advantage to have strong neighbors. <v Robert Krueger>And I think that the increased strength in Mexico is something we ought to be pleased <v Robert Krueger>about. It doesn't necessarily make it easier in a time of transition, but I think <v Robert Krueger>it's important for the future. <v José López Portillo y Pacheco>[Speaking Spanish, using translator's audio as to avoid crosstalk]. <v José López Portillo y Pacheco's translator>What I would like to say is that we would very much like to think we would <v José López Portillo y Pacheco's translator>have a more balanced relationship with the United States. <v José López Portillo y Pacheco's translator>So that we could solve a number of problems we have <v José López Portillo y Pacheco's translator>which are expressed differently in accordance with the time <v José López Portillo y Pacheco's translator>that they are addressed. I would definitely like to be less dependent on the United <v José López Portillo y Pacheco's translator>States. I think the United States, perhaps, <v José López Portillo y Pacheco's translator>would like to depend less on OPEC. Once the country, <v José López Portillo y Pacheco's translator>depends more on itself, we will be in a better situation.

<v José López Portillo y Pacheco's translator>But I believe we can ?inaudible? the relationship with the United States as <v José López Portillo y Pacheco's translator>being a respectful balance and <v José López Portillo y Pacheco's translator>a broadening of our relationship with the rest of the world <v José López Portillo y Pacheco's translator>always recognizing the influence of geography. <v José López Portillo y Pacheco's translator>There is a geographic logic <v José López Portillo y Pacheco's translator>it is evident that between 2 neighbors with a borderline of 2000 <v José López Portillo y Pacheco's translator>kilometers and complementary economies, the formula <v José López Portillo y Pacheco's translator>must be found to ?inaudible? <v José López Portillo y Pacheco's translator>so as to have justice without exploitation. <v José López Portillo y Pacheco's translator>That we would go from 1 system to another one which is broader and more understanding, <v José López Portillo y Pacheco's translator>more comprehensive.

<v Narrator>It should be noted that throughout the entire blowout incident, natural gas sales <v Narrator>negotiations between Mexico and the United States went on without interruption. <v Narrator>The 2 countries concluded a deal this past September. <v Narrator>The first supplies of Mexican gas should reach the United States on January 1st of 1980. <v Narrator>As far as the blowout is concerned, oil continues to spew from the ruptured well. <v Narrator>The total volume of the spill is said to be near 2.5 million barrels. <v Narrator>But Pemex officials may have found a way to substantially reduce the flow. <v Narrator>On the morning of Monday, October 15th, a massive steel cone was placed over the well. <v Narrator>The cone, or sombrero, as it's called, weighs 310 tons and is <v Narrator>35 by 65 feet in size. The sombrero collects crude oil, gas and seawater. <v Narrator>The mixture is fed into a triangular surface platform equipped with a separator to burn <v Narrator>off the gas. The oil and seawater are then separated in the crude is pumped into waiting <v Narrator>tankers. A spokesman for Pemex says 85 percent of the gas should <v Narrator>be controlled by the cone, but the other 15 percent could continue to spill into the <v Narrator>ocean. The sombrero is, of course, only an intermediate solution.

<v Narrator>Work is continuing on the two relief wells. <v Narrator>Crews are still feeding lead and iron balls into Ixtoc one. <v Narrator>If and when these balls stem, the flow of the well could then be sealed with cement. <v Narrator>1 final footnote. Court officials expect more suits to be filed before the October <v Narrator>23rd deadline. Joe Jamaah, lawyer for a group of commercial fishermen, estimates that <v Narrator>court proceedings could start by the end of 1980. <v Narrator>The jeopardy posed by the runaway well has all but past, but its repercussions will be <v Narrator>heard well into 1980 and maybe beyond. <v Narrator>I'm Susan Wright, good night. <v Kirby Lilljedahl>Environment, in a sense, is what we sell in <v Kirby Lilljedahl>order to, to <v Kirby Lilljedahl>have a place for the people of Texas to come to for vacation and to <v Kirby Lilljedahl>enjoy the beach. We've got to keep the environment in such a manner that this <v Kirby Lilljedahl>is inviting to the people of Texas and to the Midwest as a matter of fact.

<v Paul Cunningham>And this becomes a very- I'm worried right now about the amount of all is out there still <v Paul Cunningham>floating around somewhere. <v Paul Cunningham>Nobody yet told me for sure where it is or what happened to it. <v Paul Cunningham>I'm concerned that it may come in the next storm surge. <v Ralph Thompson>We locally, there was nothing we could do but sit and wait. <v Ralph Thompson>And that added to the frustration, knowing that it was out there, not knowing if or <v Ralph Thompson>when it was coming, how severe it would be. <v Ralph Thompson>And I think that's still the mood here to a great extent, because the well has not <v Ralph Thompson>at this point in time been capped. <v Ralph Thompson>If it continues to spill, who knows what might happen next spring when <v Ralph Thompson>conditions change, the currents and the winds could conceivably bring that <v Ralph Thompson>oil back. <v Unnamed shrimper>We're worried about the nursery grounds, and so far <v Unnamed shrimper>it looks like they've been protected. <v Unnamed shrimper>We're having- our attitude right now is to wait and see <v Unnamed shrimper>what happens when our shrimp starts spawn later on this year or early <v Unnamed shrimper>next year. And if there's oil all out there, they will kill them before they come into

<v Unnamed shrimper>the nursery areas. <v Jimmy Halliburton>I was saddened because I moved to the coast of South Padre Island because <v Jimmy Halliburton>of the beautiful beaches. And it was a horrible sight to <v Jimmy Halliburton>see a beach that looked like it was blacktop. <v Jimmy Halliburton>I wasn't really mad. <v Jimmy Halliburton>I guess in a way I was, but I really didn't have any anger. <v Jimmy Halliburton>It was just a situation that we wish it hadn't happened but it happened. <v Bob Whistler>This idea that- the thought of what? <v Bob Whistler>What are we gonna do? <v Bob Whistler>And not knowing just exactly what to do and not knowing how it was going to <v Bob Whistler>affect and how long that was going to affect these sort of things is what I guess <v Bob Whistler>bothered me. <v Announcer>Other public television stations.

<v Announcer 2>Channel 8, Houston.