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Justice Department sues SEDCO for negligence
United Press International
HOUSTON — The U.S. Justice De-
Ilf,partment, saying SEDCO Inc. was negli-
Igent and incompetent in its work on the
^Mpxican oil well that spewed 100 millions
of.gallons of oil into the Gulf of Mexico,
'^gtheta! Tpesday filed claims seeking $6 million for
I ttiinlt | cleanup and other damages.
Curtishn||,IpThe claims were phrased so that the
l *s season a, [federal government has the option of add-
he outsii W Pemargo, the Mexican drilling firm
g up their jhat operated the well, and Pemex,
1 die mid-[Mexico’s government-owned oil
ave to adn monopoly, could also be sued for damages.
)c essfiil atr (additional damages also can be requested
?ad to Ric- of SEDCO.
heOwUfi SEDCO supplied the Ixtoc I drilling
g. While platform that blew out in the Gulf of
i any radici ^ X 1 C0 miles south of the Texas coast
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June 3, spouting “more than 100 million
gallons of oil unabated before it was largely
brought under control last week. The
runaway well is expected to be totally cap-
ped within a few days.
The Justice Department called offshore
oil exploration “ultra-hazardous’ and said
SEDCO, an oil equipment leasing firm
with land and offshore operations
throughout the world that was founded by
Gov. Bill Clements, should be responsible
for the oil that washed onto Texas beaches
during the heighth of the tourism season.
SEDCO’s equipment on the Ixtoc I well
was “unfit and unsuitable for its intended
purpose,” the claim said, and “those in
charge of it were incompetent . . . (and)
negligent in carrying out their responsibil
ity.”
After the blowout, it said, SEDCO ne
glected to stop or contain the oil discharge
and failed to remove the oil from U.S.
navigable waters, the 200-mile U.S. fish
ing zone or the Texas shoreline.
The Justice Department also filed a mo
tion asking the court to allow the depart
ment to file a separate suit against
SEDCO. '
See related story, page 5
The suit was filed 15 minutes before a 10
a.m. deadline set by U.S District Judge
Robert O’Conor Jr. SEDCO had asked
that a deadline be set for filing of all
claims.
The Justice Department had planned as
late as Monday to file claims for hundreds
of millions of dollars against SEDCO as a
result of the spill that occurred off
Mexico’s Yucatan coast and spread to the
Gulf coast of Texas Aug. 9.
But after discussions with several fed
eral agencies involved, including the
Coast Guard and the Commerce Depart
ment, it was decided to seek less than $10
million in damages and “other substantial
damages to the property of the United
States,” sources said.
Administration officials said the decision
gives them the maximum flexibility to in
crease their claims as prolonged litigation
continues and the long-term effects of the
oil spill can be better assessed.
Texas Attorney General Mark White
last week filed a state suit asking $10 mil
lion from SEDCO for damages for the oil
that stained Texas beaches during the peak
of the tourist season.
Clements, who put his SEDCO hold
ings in a blind trust when he ran for gov
ernor, has contended the suit is politically
motivated.
“I still think it’s purely politically
motivated,” Clements said of the latest
suit. “I’m glad to get another bird in the
tree. Jimmy Carter has now joined (Dem
ocratic Party leader) Billy Goldberg, At
torney General Mark White, and (state
AFL-CIO leader) Harry Hubbard.
They’re all three twirping the same song. ”
SEDCO already faces other claims total
ing $350 million.
While damage to the Texas shoreline so
far has been less than anticipated, cost of
the environmental damage from the 18-
week-old spill of a Mexican oil rig may not
be fully known for years.
Fishermen, shrimpers and the Texas
state government have filed $350 million
in claims against SEDCO and two Mexi
can companies that drilled and ran the
well.
Whether SEDCO’s deal was with Per-
margo or Pemex is a critical point in any
lawsuit, because the United States is re
luctant to consider a lawsuit against the
Mexican government or its oil company.
Mexican President Jose Lopez Portillo
is refusing to help finance the massive
cleanup, and his government quickly
points to U. S. pollution of its territory
from vast industrial wastes dumped over
the years into the Mississippi River.
Battalion
Vol. 73 No. 38
16 Pages
Wednesday, October 24, 1979
College Station, Texas
USPS 045 360
Phone 845-2611
,000 share dinner
t Bill Moore Day
By RICHARD OLIVER
Battalion Staff
he Bill Moore Day banquet was a
n (he Jiedltfeoileepocfge of barbecue, political praises,
ng stoppt jiriaos County hierarchy and 1,700 cheer-
e by ouri in i’ extras.
^■Vlthough Sen. Moore of Bryan had ex-
pec ted 400-500 people, at least 2,000
(showed up at the Brazos Center Tuesday
quit c^n&ht to give him their support.
m y book lalrhe event, sponsored by the Friends of
jf. ^■) lr Bill Moore, included speeches by Texas
t to A&M University President Jarvis Miller,
the goalChancellor Frank Hubert, A&M
, I Consolidated Trustee Bill Fitch and
orinedrivp ®h an "College Station Chamber of Com-
iliinerce President Judy Rychlik. Lt. Gover-
e Penn Stall nor Hobby attended as well,
me turnot®^ oore was c l ear ly happy with the large
against a „ • i “ T > j n i
, ^ yM 1m pleased, he said. I d really only
il ‘i | aMpected 400-500 people, so I’m sorry we
l |‘ l w don t have more seats. All of this was done
, j n without any advertising; we didn’t pub-
soim <rm ze th . s at alL »
than a ne»|
jMoore, who has served in the Texas Se-
r for almost 31 years, said he has no
tmhe,- ponetca. an, J,ions,
fwewanttiH f w0l dd prefer to be where I am than in
v the governor’s position,” he said. “Being
0VerS Me dean of the Senate is a much better
[position. All the laws have to pass through
r Ts, anyway.”
IT
Moore agreed in part with Texas Gov.
Bill Clements’ statement that institutions
of higher learning were a waste of the tax
payers’ money.
Earlier in the week, Clements said
learning institutions should “tighten their
belts” like all other state agencies.
“I don’t think the governor’s statement
was too off-base,” he said. “When schools
go out and recruit foreign students just to
keep a head count, that’s ridiculous. It
costs the taxpayer in this state $2,000
apiece just to keep them here.”
Hobby, on the other hand, said he be
lieved Clements had a bit to learn about
Texas’ higher education institutions.
“I think that as Gov. Clements gains
more familiarity with public higher educa
tion in Texas, he’ll reach a better under
standing of it,” he said, T.IeJLj^ee the
marvelous quality of the public higher
education in the state.
“I think it’s interesting that if you’ll
notice. Gov. Clements’ line item vetoes
appropriations were really primarily di
rected at higher education, including uni
versities in Austin, Galveston and even
A&M University here. I hope that as he
has more exposure to higher education in
Texas, some of these vetoes will be elimi
nated. ”
Moore also said he feels the biggest
:—
problem the nation faces right now is infla
tion.
“The (U.S.) Congress must simply quit
spending so much money, he said.
“Cheap money drives prices up. We can’t
do it and sacrifice national defense,
though.”
Moore thinks Texas, on the other hand,
is doing fine.
“Our state is in fine shape,” he said.
“We are in good shape financially. We
have a ‘pay-as-you-go’ system. We can’t
spend money we don’t have. Also, the
whole state of Texas is in good shape polit
ically.”
Moore, in his speech, was confident of
his political future as senator.
“I have no intention of quitting as long
as my health is good and my wife will put
up with me,” he said. “I intend to go back
and represent the state of Texas and this
disfncffe’the best of my ability. ”
Bill Fitch, speaking earlier to the
% crowd, summed up Moore’s tenure, say
ing, “He hasn’t ever had but one job. He’s
either stuck in the mud or loyal as hell.”
State Sen. Bill Moore, right, and Lt. Gov. Bill
Hobby joke during Bill Moore Appreciation Day,
an annual fund-raising dinner for the long-time
Bryan legislator. About 2,000 people attended the
dinner in the Brazos Center Tuesday.
Battalion photo by Lee Roy Leschper Jr.
Cleaners begins accepting claims
for items lost in Thursday fire
By DEBBIE NELSON
Battalion Staff
University Cleaners started taking
claims Monday morning for clothes
burned in a fire that gutted the building
last week, owner Bernie Gessner said
Tuesday.
The business, at 211 N. Main St. in Col
lege Station, will take claims until Dec. 17
and pay them as quickly as possible, Gess
ner said. He said the 100-150 people who
filed their claims Monday may have to wait
three weeks to get reimbursed.
To claim reimbursement for his clothes,
a customer needs to tell the cleaners his
name, address, the day he brought the
clothes in to be cleaned, how many gar
ments were lost, and their approximate
value. Claims should be filed with Univer
sity Cleaners at FM 2818 and Southwood,
next to the Doux Chene apartment com
plex.
Gessner said the cleaners had insurance
on its equipment, but not on the clothes.
Rates on that kind of insurance are too
high, he said, unless a cleaners is in a
fire-proof building.
Authorities had first thought the fire was
accidental, but investigators found the fire
to be a result of burglary and arson, Gess
ner said. He said the fire marshal discov
ered that someone entered the cleaners
through the back, took some change and a
pistol, then set fire to the building.
Gessner said he is not obligated to pay
customer’s claims because the fire was not
caused by negligence on his part.
However, Gessner said, he is paying all
claims. He could give no estimate of the
total value of clothes lost, but the overall
loss, excluding the cost of the building, is
$75,000-$100,000.
Gessner said he expects most people to
file claims for lost clothes within the next
few weeks. Since 90 percent of the clean
ers’ records were saved — including those
on the clothes — Gessner expects few false
claims.
Depreciation of old clothes is the most
severe problem anticipated, Gessner said.
For example, if someone claims a pair of
2-year-old pants cost $35, he may receive
only 40 percent (or $21) because of the age
of the pants.
Values are determined by the Interna
tional Fabric Care Institute Fair Claims
Guide, which is used nationally.
Gessner said he has received several
claims that seem too high. Two students
claimed to have lost brand-new $400 suits
Wind causes no automatic shutdown
they had purchased for interviews. In
cases like this, Gessner will tiy to find out
where the garments were purchased, to
assess the value.
“A lot of the lost clothes were purchased
locally,” Gessner said, “so they’re fairly
easy to substantiate.”
There were 250-300 Corps of Cadets
uniforms in the shop when it burned —
fewer than usual, Gessner said. He said
these claims are easily recovered, because
the store writes up a list of the people who
lost uniforms and gives it to the Military
Property Custodian (MFC), which then
reissues the uniforms.
Gessner he would be interested if the
building’s landlord wants to rebuild the
cleaners. The fire code for new buildings
(the old one was built in 1936) would re
quire the cleaners to be built of com
pletely non-flammable materials, which
would be very expensive.
Ride’s safety device may have failed
United Press International
DALLAS — State Fair of Texas officials
said Tuesday the tram ride that mal-
ftmetoned Sunday, killing one person and
injuring 15, was not designed to shut down
automatically if buffeted by high winds.
Wayne Gallagher, executive vice presi
dent and general manager of the fair, told
a news conference the only emergency
device to stop the ride is activated when a
roller on a gondola leaves a cable.
He said investigators will examine the
possiblity the emergency device failed
Sunday when one gondola — swaying in
high winds on the half-mile cable route
over the fair’s midway — became jammed
as it passed over a supporting post and
three other cars slammed into it, dropping
two of the cars almost 100 feet down on top
of tent booths on the crowded midway.
Gallagher said the tram ride — in opera
tion since 1964 — was designed to operate
in winds up to 36 mph but ride operators
must use their judgment in stopping the
ride when winds are high. Wind gusts up
to 35 mph were reported Sunday.
Witnesses blamed those winds for the
accident that killed Fred Millard, a 41-
year-old Texas Instruments employee,
who was hit by one of the falling gondolas.
His wife and their two children and a
dozen other persons were injured. Three
of the injured remained hospitalized
Tuesday.
Gallagher did not name the wind or any
other factor as a cause of the accident. He
said an extensive investigation was under
way but results may not be available for
some time.
Scores of investigators converged on the
almost quiet fairgrounds Monday, includ
ing local and federal government inspec
tors. Others were insurance adjusters, fair
authorities and representatives of Von Roll
Co., manufacturer of the ride.
By Monday afternoon, fair officials said,
experts had completed visual and photo
graphic inspections. They then began the
slow process of removing all of the more
than 40 gondola cars and inspecting them
individually.
Meanwhile, an $850,000 lawsuit was
filed late Monday against the State Fair
and Von Roll, by an attorney representing
one of those seriously injured in the acci
dent, prompting a district judge to grant a
temporary restraining order that directs
fair officials not to destroy evidence.
Attorneys for the fair, Russell Smith and
Jeff Lynch, attended the news conference
Tuesday and advised Gallagher against
commenting on any aspect of the suit.
Gallagher did say that the fair has insur
ance.
“There is insurance coverage — cer
tainly by the contractor, certainly by the
fair and maybe by others.”
David Peter, a flagpole painter from Austin, scales the staff in front of
Texas A&M University’s Academic Building for its paint job, which is
done every two years. Peter has been painting flagpoles for about seven
years. Last week he painted the one in front of the Administration
Building. Battalion pBoto \vy Lynn Blanco
United Way reaches 38%
of $75,000 campus goal
Campus United Way contributions and
pledges totaled $28,584 as of Friday, said
Don Hellriegel, campus chairman for
Brazos County United Way. This is 38
percent of the $75,000 goal.
“Our level of weekly contributions has
substantially dropped off,” Hellriegel said
in a letter to campus area coordinators and
unit representatives. “1 hope we can have
a surge in contributions this next week.”
Carter given authority
to develop gas-ration plan
*v • 77_ 1 ft 1 ocf Wrlnqrlq\/ \»/qc crii
United Press International
WASHINGTON — The House
Tuesday passed and sent to the White
House a bill allowing President Car
ter to develop a standby gasoline and
diesel fuel rationing plan, but requir
ing the approval of Congress to actu
ally implement it.
The bill, which passed the Senate
77-18 last Wednesday, was given final
approval by the House, 301-112.
The legislation was worked out by a
House-Senate conference committee
between differing versions of the bill.
Despite months of wrangling and
bitterness, the bill’s final passage was
relatively uneventful. Many Republi
cans, as well as Democrats, voted for
it.