Daily Report

This Afternoon's Headlines / Mon, July 12, 2010


Officials: Feds to issue new drilling moratorium

The Obama administration will issue a new revised moratorium on offshore drilling today, two administration officials told The Associated Press. Both officials requested anonymity so as not to pre-empt the official announcement. Last week, a federal appeals court rejected the government's effort to restore its initial offshore deepwater drilling moratorium, which halted the approval of any new permits for deepwater projects and suspended drilling on 33 exploratory wells. That moratorium, issued in response to the catastrophic Deepwater Horizon disaster begun in April, was rejected last month by U.S. District Judge Martin Feldman. "If some drilling equipment parts are flawed, is it rational to say all are?" Feldman asked. "Are all airplanes a danger because one was? All oil tankers like Exxon Valdez? All trains? All mines? That sort of thinking seems heavy-handed, and rather overbearing." Interior Secretary Ken Salazar said at the time that he would issue a new deepwater drilling moratorium that could be refined to reflect offshore conditions and allow drilling in areas where reserves and risks are known, in contrast to exploratory reservoirs. In its appeal, the Interior Department asked the 5th U.S. Circuit Court of Appeals to let the temporary ban stand until it ruled on the merits of the case. Several companies that ferry people and supplies and provide other services to offshore rigs argued that the moratorium was arbitrarily imposed following the April 20 explosion, which killed 11 workers and blew out a well 5,000 feet underwater.

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Barham: Oil of less concern than the dispersants used to clean it up

The biggest mystery about the Deepwater Horizon oil spill will be the impacts of the tremendous amounts of sub-sea dispersants used by BP in the cleanup effort, says Robert Barham, Louisiana Secretary of the Department of Wildlife and Fisheries. "The problem is, when you inject dispersants into this plume of oil, you inject into it an unknown that had never been done before," says Barham, who was speaking at the Baton Rouge Press Club. "As ugly as that oil on the surface is, it degrades very rapidly, especially the dangerous parts of it." Barham says the extreme pressure and temperature of the water could further complicate recovery. "When you break apart that oil molecule, it disperses across the seafloor in unknown ways and in unknown currents," he says. "No one knows what the affect of spreading that across the seafloor is, or where it will go or what will consume it. That's what concerns us."

While Barham says he wants people to be able to fish, both commercially and recreationally, reports of unsafe seafood coming from Louisiana would further undermine the seafood industry's image nationwide. Louisiana will test more than any other state, to ensure the safety of its seafood, Barham says. "We're going to have to be safer than any other state to gain that market share back," he says. So far there have been no reports of illness related to Louisiana seafood. DWF is in talks with BP along with the Environmental Protection Agency and the Department of Health and Hospitals to secure $457 million for the testing and establishment of a certification for Louisiana seafood. —Rebekah Allen

Alcohol sales percentage forces Lucy's to close on Sundays

Lucy's Retired Surfers Bar and Restaurant has started closing on Sundays, after the new downtown establishment saw its food sales fall short of the level needed to stay open seven days a week. Baton Rouge law requires that 60% or more of a restaurant's revenue must come from food sales in order for it to stay open on Sunday. Despite a Facebook campaign, Lucy's was unable to hit the 60% target, says Laura Llovet, event and marketing manager. The restaurant shut down for the first time Sunday. "It is a shame," says Llovet. "We're trying to develop the downtown area, but the ordinance in East Baton Rouge Parish is not helping us." Llovet says the problem is that the bar at Lucy's gets "pretty jam-packed" late Friday and Saturday nights, which skews the numbers. Ironically, restaurant officials say Sundays were the most family-friendly days because of all the downtown activities going on. Lucy's can apply for a new audit in six months. "We're still family-friendly, and we still have our restaurant license," Llovet says. —Timothy Boone

New faces set to join EBR school board

There will be at least three new members on the East Baton Rouge Parish School Board next year. Incumbent board members Derrick Spell, Jay Augustine and Greg Baldwin all decided against running. And of the eight incumbents who did qualify, only Jill Dyason and Tarvald Smith were unopposed. There had been a concerted push by the Baton Rouge Area Chamber's political action committee, CAPE 2.0 and Progress Is… Baton Rouge to recruit new members for the board. Matt McKay, who heads FuturePAC, BRAC's political action committee, says he's looking forward to meeting with the candidates and making endorsements. "It looks like there is a good deal of interest among new candidates, a number of whom appear to be reform-minded," McKay says.

Efforts under way to save Avondale

Gov. Bobby Jindal and members of the state's congressional delegation held a press conference today to drum up support for keeping the Avondale shipyards open. "Let me be clear – we will do everything we can to secure the future of Avondale, the workers who depend on this company and the communities around them that are all tied to the work done here," Jindal says. Stephen Moret, Louisiana Economic Development secretary, announced last week he was concerned about the long-term future of the shipyard, after meeting with the plant's owners. Moret told The Times-Picauyune the Navy has scaled back or pushed back on its plans to buy San Antonio-class vessels, which are built at the shipyard just outside New Orleans. Avondale has about 5,000 workers and the shipyard indirectly supports another 7,000 jobs. Jindal says the state has already started talking with potential buyers and tenants in order to secure employment at Avondale.

Daily Report planner: Cassidy, Tea Party talk drilling moratorium … Disney offers leadership lessons … Technology Road Show comes to town

Today — U.S. Rep. Bill Cassidy, R-Baton Rouge, will hold a town hall meeting at 7 p.m. in Boudreaux's to discuss the moratorium on offshore oil drilling. The event, co-sponsored by the Tea Party of Louisiana, will also feature Don Briggs, president of the Louisiana Oil and Gas Association, and Ginger Sawyer of LABI.

Thursday — The Disney Institute and LSU Executive Education are teaming up to offer a daylong seminar, "Disney's Approach to Leadership Excellence," at the Hilton Baton Rouge Capitol Center. The event begins at 8 a.m. and goes until 5 p.m. The program will give participants new ideas for increasing effectiveness as leaders and for inspiring high-performance teams. Program registration now is $399. Special group rates are also available. This price includes all necessary course materials, a full day of instruction, lunch and refreshments. For more details, click here.

Thursday — The Foundation for Historical Louisiana will present the seminar "Bayou Bijou: Movies Shot in Louisiana" at 6 p.m. in the Old Governor's Mansion. Secretary of State Jay Dardenne will share a summary of the 50 most famous movies shot in Louisiana, and Amy Mitchell-Smith of the Baton Rouge Film Commission will discuss movies currently filming in the state. Admission is free for foundation members and $10 for guests.

Friday — The Louisiana Department of Revenue will hold a free seminar for business operators at 10 a.m. in its downtown offices, to help those attending improve their understanding of sales tax. For more details or to register, call 219-5550.

July 19 — The Louisiana Technology Council's "Technology Road Show" will stop at 5 p.m. at the Baton Rouge River Center. The event, co-sponsored by Louisiana Economic Development, is designed to spotlight technology businesses and initiatives from across the state. For more information, e-mail mlewis@ltc-la.org.

For the full list of upcoming events, click here.

Lapeyrolerie new executive director for La. Democrats

Renee Lapeyrolerie has been named executive director of the Louisiana Democratic Party. Lapeyrolerie, who served as political director for U.S. Sen. Mary Landrieu's campaign in 2008, will be responsible for day-to-day operations as the party heads into the fall elections. A native of St. John Parish, Lapeyrolerie graduated from Loyola University. She worked on successful campaigns for former Gov. Kathleen Blanco and former Lt. Gov. Mitch Landrieu.

Executive spotlight: Bob Israel

You wouldn't expect the president of the Louisiana Automobile Dealers Association to know much about horseback riding. But that's one of Robert "Bob" Israel's favorite activities, and just one way in which he is full of surprises. Take Israel's stance on public schools in Baton Rouge. His desire to improve them is a common theme in the community, but he draws on experiences that include having a father who served as a school superintendent. Israel's greatest fear for Baton Rouge is that "the sins of the past and the failures of the present will continue to block progress. Let's just all make one big apology and get on with it." Read the full Q&A with Israel here. Here is a sample:

Why do you do what you do?

"It drives me. No pun intended."

News roundup: Shaw teams up for Saudi nuclear deal … Alexandria Mall gets new managers … NCAA announces setup for 68-team tournament

Working with Toshiba, Exelon: The Shaw Group is teaming up with Toshiba and Exelon Nuclear Partners to pursue opportunities to build nuclear power plants in Saudi Arabia. Under the deal, which needs approval from Congress, Shaw and Toshiba would design and build nuclear plants, while Exelon would operate the reactors. Shaw is currently studying and recommending operational improvements in the 53 power plants currently operating in Saudi Arabia.

New boss: General Growth Properties, the parent company of the Mall of Louisiana, has transferred management of 18 malls to Jones Lang LaSalle. The Alexandria Mall is one of the properties included in the deal, along with shopping centers in California, Florida and Hawaii.

Tip-off: The NCAA unveiled its plans for the newly expanded 68-team men's basketball tournament today: Beginning next March, eight teams will play early the opening week in a "First Four" round, with the winners advancing to games on Thursday or Friday. Two of the games will match the tournament's lowest seeds, Nos. 65 through 68. The other two games will include the last four at-large qualifiers. The format appears to be a compromise. Including the lowest at-large teams will probably prevent mid-majors from being over-represented in the first round, but it could also mean that two teams from bigger conferences—those generally seeded between 11th and 13th—will be out before the tournament really gets going.


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