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BP to face spill victims in US court for first time
29 July 2010;hindustantimes.com:Los Angeles:British energy giant BP and victims of the Gulf of Mexico oil spill go to court for the first time on Thursday during a session in Idaho that sets the stage for a potential trial of the century. The proceedings in Boise, Idaho before the Multidistrict Litigation Panel (MDL Panel) will examine whether complaints submitted by around 200 plaintiffs can be consolidated, and determine where the hearings should take place and under which judge. A decision is expected around two weeks after the hearing, but the session will give trial lawyers a test run for the arguments they will make during what could be years-long legal proceedings against BP. The judges on the panel are expected to consolidate the complaints for practical reasons, but observers will pay close attention to where the panel orders the case be heard, and under which judge. "As a legal matter, the MDL Panel has authority to send them to any federal court in the US, though, as a practical matter, the panel may very well be inclined to choose a judge located around the Gulf Coast area," said Richard Nagareda, a law professor at Vanderbilt University. Richard Arsenault, a lawyer for the plaintiffs, said he expected pre-trial hearings to be held in Louisiana, the Gulf state closest to site of the BP-leased Deepwater Horizon rig, which sank on April 22, two days after an explosion that killed 11 workers and unleashed the worst US oil spill ever. Ordinarily, he said, the panel will consider the area's caseload and accessibility to witnesses among other factors when deciding where to send a case. "In this case, however, I suspect that the experience of the jurist will be the critical consideration and the other factors will be a distant second," he told the news agency. Nagareda agreed and noted the panel would also likely seek out a judge with no potential conflict of interests. "I believe the panel will take great care to select a judge with no financial or other professional connection to the oil industry. That way, his or her impartiality would be beyond question," he said. Wherever the case ends up, it promises to be a high-profile process attracting plenty of public interest and scrutiny. Nagareda compared it to California court hearings involving Japanese automaker Toyota over faulty vehicles. Thursday's court hearing comes during a rough week for BP, which announced Tuesday it would replace British chief executive Tony Hayward with Bob Dudley, an American, in a bid to repair its tattered US reputation. The firm also reported a quarterly loss of 16.9 billion dollars after it set aside 32.2 billion dollars to cover costs associated with the oil spill.
29 July 2010;timesofindia.indiatimes.com:NEW DELHI: Reliance Industries will be able to pump natural gas at full capacity from its deep-sea field during the year to March 2013, the country's oil secretary said, indicating a delay of almost two years. Reliance is currently pumping about 55-60 million cubic metres a day (mmscmd) of gas, oil secretary S. Sundareshan told reporters on Wednesday after a meeting of a ministerial panel that had been set up to look into the allocation of gas from KG D6 block in Krishna-Godavari basin. Last December, junior oil minister Jitin Prasada told lawmakers that output from KG D6, off India's east coast, was expected to be ramped up to a peak rate of 80 mmscmd by mid-July. Reliance, which has the heaviest weight on the main index, shed 3.1 per cent, its biggest daily decline in two months, as investors ignored a 32 per cent rise in net profit and focused on gas production concerns. Reliance said on Tuesday it would increase output at its KG D6 block after undertaking a review of the reserve. India imports more than 70 per cent of its energy needs and is looking to secure assets abroad and attract investment to develop its oil and gas fields at home. Currently it imports 28 mmscmd or 17 per cent of its gas demand to meet demand from the power and fertiliser sectors. Sundareshan said the power ministry had sought an additional allocation of 8.22 mmscmd in the current fiscal year to March 2011 and 8.3 mmscmd for the following year, on top of the existing commitment of 32.67 mmscmd. Sundareshan said India's current gas consumption is 170 mmscmd while local output is 142 mmscmd. He said domestic gas output is expected to rise to 151 mmscmd by March 2012 and 186 mmscmd by March 2013, as gas fields operated by other firms including Oil and Natural Gas Corp and Gujarat State Petroleum Corp are also expected to start production. Sundareshan said the ministers' panel has decided to divert 2.4 mmscmd gas committed to state-run ONGC's liquefied petroleum gas plant and some industries in Uran in western India. He said ONGC would meet its own requirement and that of other industries in Uran through its own fields. "The decision has been taken to lessen the load on KG D6 production to match demand," he said. Reliance owns 90 percent in the D6 block in the Krishna Godavari basin, while Canada's Niko Resources holds the remainder.
29 July 2010;timesofindia.indiatimes.com:Chanchal Pal Chauhan:NEW DELHI: Maruti Suzuki said on Wednesday it is fixing an oil leakage in the engines of 6,000 Altos produced in April that causes starting problemsTata Motors inaugurates Nano factory at Sanand Nano Europa in the small car, less than a year after more than 1 lakh units of its flagship export model A-Star were recalled for faulty fuel pumps. The company has asked its more than 800 sales network centres and nearly 2,740 service workshops to check and repair the affected Altos, but a spokesman played down the episode, saying it is not a recall. “The vehicle, if affected, may show some starting problems. This can be easily repaired at the workshop," he said. The country’s biggest carmaker sold 64,500 Altos between April and June. Maruti could not ascertain yet the number of cars that face the problem. The company also ships Alto to Nepal and Sri Lanka. The A-Stars were recalled from November 2009 from India and export markets such as Europe, Australia and North Africa. Experts said problems in Alto erupted after the company tweaked the F-series engine that was upgraded to meet Bharat Stage IV emission norms that kicked in April. "The engine comes with some design changes incorporated in its core structure, which could have led to this problem. It can affect the pressure in the engine and also impact car’s performance," said an auto expert, preferring not to be named. Maruti dealers in Delhi NCR have asked customers to get their cars rectified at the earliest after it started receiving complaints of oil leakages during May and June, people familiar with the matter said. "We do not know the total number of cars having the problem. We have called 28 customers to bring their cars for technical evaluation," a Delhi-based Maruti dealer said on condition of anonymity. Alto is Maruti’s largest-selling model in India. The company sold 2.35 lakh Altos, or 27% of total sales, for the year to end March. The company will be hoping that the incident does not snowball into a recall scandal linked to faulty pedals that dented Japanese carmaker Toyota’s reputation for quality. Maruti is already up against an eroding market share as competition intensifies. It is also launching a refurbished Alto next month to capitalise on the strong brand recall of the car.
28 July 2010;business-standard.com:Ajay Modi:New Delhi: Indraprastha Gas Ltd, or IGL, shows all the benefits of having a free run in a lucrative market. The sole supplier of compressed natural gas (CNG) and piped natural gas in the national capital region has doubled its turnover and profits over the last five years. That is not bad for a company which was created out of necessity when the Supreme Court, following a public interest suit, ordered in July 1998 that all public transport vehicles in Delhi move to CNG and a network of at least 70 filling stations be created for them. Spurred on by authorisation from the government last month, the company has now entered Ghaziabad, which, alongside Noida, is a breeding ground for large housing complexes (in other words, potential customers who would want to get rid of the tyranny of cumbersome cylinders). Gurgaon in NCR is way behind Delhi in city gas connectivity. It has only a handful of CNG stations run by Haryana Gas Company and virtually no piped gas connectivity. However, experts doubt that Delhi’s success would be replicated elsewhere. The doubters include L Mansingh, the chairman of downstream regulator Petroleum and Natural Gas Regulatory Board, who attributes the development of the CNG network in Delhi primarily to the Supreme Court’s intervention. Many are also quick to point out that the company’s filling stations in Delhi’s prime locations continue to have long queues. The running cost of a car on CNG, despite a recent price rise of Rs 5.60 a kg, remains about 62 per cent cheaper than those run on petrol and 27 per cent cheaper than the diesel ones. That ensures enormous interest of buyers in CNG vehicles. The fact that many of them, given the tank capacity, need to visit a filling station every couple of days does nothing to shorten the queues. IGL, though, remains sanguine. The queues, it says, would vanish once it is allowed to operationalise the 40-odd stations which are stuck in the maze of clearances. “We have been proactive in expanding the CNG pump network. However, due to the long-drawn licensing process involving various departments, 40 stations are unable to dispense CNG. The licensing process takes up to six months in most cases and that is the only thing coming in the way. It is not a delay at our end,” IGL Managing Director Rajesh Vedvyas told Business Standard. In the last financial year, IGL set up 60 stations. Another 39 are in different stages of development. By March next year, the company hopes to have 280. “We have doubled our capacity to service the CNG consumers in the last three years and invested over Rs 1,000 crore. This is no mean achievement,” Vedvyas said. On the piped natural gas, Vedvyas said the company had been unable to dig for pipes as large parts of the city are already dug up in preparation for the Commonwealth Games, to be held in October. “We have 190,000 piped natural gas connections across Delhi and NCR. We plan to give 60,000-70,000 new connections every year in Delhi and 10,000-15,000 in NCR. There is no dearth of resources,” said Vedvyas. In Ghaziabad, its new territory, IGL is facing problems because the GAIL pipeline, which feeds IGL’s network in east Delhi, has limited capacity. “We are setting up a spur pipeline to address this problem. This pipeline should be completed by October,” said Vedvyas. That, the company would hope, will establish that IGL’s Delhi success story is not just gas.
27 July 2010;deccanherald.com:New Delhi:Oil companies will pay an interim price of Rs 27 per litre for ethanol, which they will buy from the sugar mills for doping in petrol, and a final price will be fixed after an expert committee submits its report. "This is an interim price that the EGoM has approved. The final price will be dependent on the recommendations of an expert committee appointed for the purpose," Oil Secretary S Sunderashan said here on Tuesday, when asked about the outcome of of an Empowered Group of Ministers (EGoM) meet last evening. The EGoM had fixed the price at Rs 27 for a litre of ethanol in April this year as well. In October 2007, the Cabinet had made mandatory 5 per cent ethanol blending across the country, with the exception of Jammu & Kashmir, North-East and island territories. However, the Petroleum Ministry had not been able to implement the decision due to non-availability of the product. In March this year, the government had constituted the EGoM to resolve differences over mixing of ethanol in petrol. The Chemical Ministry was objecting to the use of ethanol for petrol-blending, stating that the price of molasses they use for manufacturing liquor has gone up. Both ethanol and alcohol are made from molasses, and the sugar industry had estimated a production of 160 crore litres in 2009-10. Potable liquor sector needs about 100 crore litres while the five per cent ethanol-blending programme would require 68 crore litres. Besides, molasses are also required for industrial purposes. The price increase was supposed to tempt producers to sell ethanol to oil firms, but the Chemical and Fetiliser Ministry had protested by saying that the petrol-doping programme will impinge upon the demand of potable liquor sector and chemical makers. The potable liquor sector and chemical producers are two primary consumers of molasses-based alcohol. It was stated that the demand for the potable sector was increasing, and there was no justification to increase the price of ethanol to Rs 27 per litre.
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