American Scandal - Deepwater Horizon | No One Was Listening | 1

Episode Date: October 21, 2025

In the 1990s, BP executive John Browne bets the oil company’s future on high-risk, high-reward drilling projects. But BP’s thirst for profit comes at a price. As safety violations and fat...alities mount, Jeanne Pascal, a lawyer at the Environmental Protection Agency, fights to hold BP accountable.Be the first to know about Wondery’s newest podcasts, curated recommendations, and more! Sign up now at https://wondery.fm/wonderynewsletterListen to American Scandal on the Wondery App or wherever you get your podcasts. Experience all episodes ad-free and be the first to binge the newest season. Unlock exclusive early access by joining Wondery+ in the Wondery App, Apple Podcasts or Spotify. Start your free trial today by visiting wondery.com/links/american-scandal/ now.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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Starting point is 00:00:00 Want to get more from American Scandal? Subscribe to Wondry Plus for early access to new episodes, add free listening, and exclusive content you can't find anywhere else. Join Wondry Plus in the Wondry app or on Apple Podcasts. American Scandal uses dramatizations that are based on true events. Some elements, including dialogue, might be invented, but everything is based on historical research. It's just before 9.45 p.m. on April 20th, 2010, in the Gulf of Mexico, about 50 miles off the coast of Louisiana.
Starting point is 00:00:49 Aboard the fishing boat, rambling wreck, Bradley Shivers, crumbles an empty can of beer, and then calls out for another. Shivers and two of his buddies are on an overnight fishing trip, hunting for tuna, the deep waters of the Gulf. They've already had a great day's catch and plan to wake up early tomorrow to start again at first light. So while his friends go into the cabin for more beers, Bradley takes in their rods. It's a balmy spring evening, and the sea is so still that shivers can make out the stars reflected in the water. He smiles and thinks there's nothing like fishing on the Gulf like this. But then suddenly, a bright flash lights up the sky. Shivers squints at the horizon trying to make sense of what he's seeing. Then he hears a boom.
Starting point is 00:01:35 The force of the sound hits Shiver's chest and rocks the entire boat. He grabs the railing as his rod clatters to the deck. One of his friends ducks his head out of the cabin. What the heck was that? Did we hit something? No, it was, I don't know, some kind of explosion. An explosion? Yeah, I saw this flash out there and then, hey, pass me those binoculars. Shiver's friend hands him a set of binoculars, and he scans the horizon. Oh, something big is just burning up. Here, take a look. But as he goes to hand the binoculars to his friend, he hears a May Day call come across the ship's radio. It's an oil rig, the Deepwater Horizon, requesting immediate assistance.
Starting point is 00:02:15 Shivers races across the deck to the radio and grabs a handset. Deepwater Horizon, this is the fishing boat rambling wreck. We copy your May Day. What's your position and status? Shivers waits for an answer, but there's only silence. Come in, Deepwater Horizon. This is rambling wreck. Repeat, what's your position and status? Shivers lowers the handset and glances over at his friends.
Starting point is 00:02:38 They're not answering. What do we do? Well, we've got to get over there, right? We have to help. We're just three guys in a fishing boat. What kind of help would we be? Well, we've got to do something. Who knows how long it'll take the Coast Guard to get out here? We might be all they've got. Shivers hesitates, as static, crackles over the radio. He then lifts the handset to his mouth again. Deepwater Horizon, this is the rambling wreck.
Starting point is 00:03:00 We are on route to assist. Repeat, we are on route to assist. Bradley Shivers starts his boat's engine and takes the helm. He doesn't need any charts to navigate. The fire and the distance is bright enough to light the way. While he steers, his friends call the Coast Guard and pull out everything they think might be useful in an emergency. First aid kits, life jackets, and flotation devices.
Starting point is 00:03:24 but they have no idea what to expect. And as they race toward the burning rig, Shivers tries not to think about the silence at the other end of the radio. Grab a coffee and discover Vegas-level excitement with BetMGM Casino. Now introducing our hottest exclusive, Friends, the one with the multi-drop.
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Starting point is 00:04:40 What if I told you that the crime of the century is the one being waged on our planet? Introducing Lawless Planet, Wondry's new podcast exploring the dark side of the climate crisis. Uncover shocking tales of crime and corruption threatening our world's future. Follow Lawless Planet on the Wondry app or wherever you get your podcasts. On April 20th, 2010, the world watched in horror as flames consumed the Deepwater Horizon oil rig in the Gulf of Mexico. Eleven workers were killed and 17 others were wounded in the initial explosion. But that human tragedy quickly became an environmental disaster. Over the course of 12 weeks, millions of gallons of oil leaked into the
Starting point is 00:05:54 Gulf in the largest such spill in history. Government agencies, conservation groups, and local communities scramble to save beaches, wetlands, and wildlife, but all the while, the oil company responsible for the leak, British Petroleum, repeatedly minimized the scale of the disaster and failed to share vital information with the scientific community. According to the many ordinary citizens who were harmed, as well as journalists and industry experts, BP seemed more concerned with protecting its reputation and profits than people or the environment. But the Deepwater Horizon disaster was not unforeseeable. A federal judge would later rule that it was no accident, but instead the result of years of cost-cutting and corporate risk-taking,
Starting point is 00:06:38 compounded by the failure of regulators whose job it was to protect the public. Time and again BP had promised change only to cut the same corners and make the same mistakes. Eventually, the workers of the Deepwater Horizon and communities all across the Gulf were the ones who paid the price. This is episode one. No one was listening. It's the summer of 1989 in New York City. John Brown paces the Rainbow Room, an opulent art deco venue with sweeping views of Manhattan. Brown is a senior executive at British Petroleum, and he hopes the grand surroundings will soften the bad news he's about to deliver. He's gathered BP investors from all over the world to give his first address as the company's new head of exploration. Brown has been in the oil industry his entire career.
Starting point is 00:07:29 Having started as an exploratory geologist on the frontiers of Alaska, he now holds a critical executive role in one of the most famous oil companies in the world. And as BP's new head of exploration, Brown's job is to find new sources of oil and gas and make them profitable. He knows the company's investors are expecting a positive update. After all, BP has been reporting healthy profits, but Brown knows that's only half the story. He waits for the investors to take their seats and then steps up to the podium. The room grows quiet as he begins his presentation. He doesn't sugarcoat the news. He tells his audience that British Petroleum is in decline. Profits may be soaring right now, but in the long term, the company's prospects look
Starting point is 00:08:13 far bleaker. The majority of BP's oil comes from the North Sea off the coast of the United Kingdom and from Alaska's Prudo Bay, and recent technological advances have boosted extraction rates at those sites. But one thing is certain, eventually the oil there is going to run out. Brown pulls up an acetate slide that shows the last century of BP's oil reserves. They peaked in 1960 at about 70 billion barrels of oil, but now they're down to just 5 billion. In less B.P. BP can discover new sources of oil soon. The business faces extinction. Hearing this news, the room dissolves into uneasy murmurs as the investors try to make sense of it all. Brown waits patiently at the podium. He knows it's a lot to take in. Eventually, the noise dies down and all eyes
Starting point is 00:09:01 turn back to him. Brown then admits that he knows this was not what they wanted to hear, and it's not what he had hoped for in his first weeks on the job either. But he promises that he is the man to replenish BP's reserves and make the company a truly competitive player in the oil industry again. When the meeting ends, investors line up to shake Brown's hand and thank him for his honesty. And as the last of them files out of the Rainbow Room, Brown breathes a sigh of relief. The meeting went about as well as he could have hoped, but the real work has barely begun. The problems Brown is trying to fix that British Petroleum have roots reaching back almost a century to the very beginning of the company. BP began in the early 1900s as the Anglo-Permen
Starting point is 00:09:42 Persian oil company. After it faced bankruptcy in 1914, it was rescued by the U.K. government and eventually became known as British Petroleum. The British government then held a controlling stake in the company for the next six decades until the 1980s, when BP was sold off and became a private company. But in the years that followed, the newly independent business struggled. It had a complex bureaucracy, a bloated corporate structure, and heavy debt. Now, as the 1990s approach, BP is at a crossroads. John Brown is convinced that he has the ideas to turn the company around. He believes oil exploration should be about big risks and big rewards. And embracing Brown's plan, BP sells off over 80% of its existing oil fields around the world.
Starting point is 00:10:29 It then becomes a trailblazer in unstable political regions like the former Soviet states, Russia and Azerbaijan, and it invests heavily in the newly emerging technology of deep water drilling. This bold approach is accompanied by a relentless focus on cost-cutting. Brown tells his team again and again that it's the only variable they can fully control. Oil prices, politics, geology, all of that is greatly out of their hands. But what BP spends is up to them. Brown uses this philosophy to slash the size of his workforce, outsource engineering, and cut operational budgets.
Starting point is 00:11:05 If something isn't making BP money, it has to go. And from now on, exploration will live and die by one metric, profit per barrel. Brown's strategy pays off. His division opens significant new reserves in the sea around Scotland, West Africa, and the Gulf of Mexico, and these new oil wells secure the future of BP. As a result of his success, in 1995, Brown is promoted to CEO. And once he's installed in the top job, Brown announces his far bigger ambitions for
Starting point is 00:11:36 the company. In September 1996, he meets with BP's board of directors in Berlin. in. Brown takes his seat at the head of the table while an assistant pours him a cup of coffee. He's feeling satisfied with progress so far. In his first year as CEO, he has already delivered a 30% increase in net profit. But he knows that investors remain cautious. BP still isn't seen as a major player in the oil industry. Brown, though, is determined to change that. He takes a sip of coffee and then stands to address the room. He acknowledges the progress they've made but warns against complacency. The world is entering another phase of globalization,
Starting point is 00:12:13 and with it will come a wave of corporate consolidation. Brown is convinced that only the largest companies will survive in this new era. The rest will be swept away. So if BP wants to navigate the coming changes successfully, the company will need to grow and quickly. But new oil fields alone won't be enough. What Brown suggests is a merger. To leapfrog the competition, he proposes that the company opened negotiations with a U.S. oil giant like Mobile or Amoco. A deal of that size would make BP one of the largest firms in the world. But at first, the board pushes back on this idea. Many of them are uneasy about the cause, complexity, and political risks of a merger. But eventually Brown is persuasive. His articulate and confident demeanor wins over
Starting point is 00:12:57 even the strongest skeptics in the room. So by the time he leaves Berlin, he has the board's approval to go shopping with a multi-billion dollar budget. His first talks with Mobile Flounder, but in 1998, Brown successfully completes a deal with Amico instead. This $48 billion merger is the biggest in history, makes BP the third largest publicly traded oil company in the world. And encouraged by his success, Brown doubles down on his strategy. BP fires tens of thousands of employees, outsources more jobs to third-party contractors and then announces a deal to buy yet another American oil company, Arco. The markets like what they see. In 1999, BP's stock price increases by over 30%, and the London
Starting point is 00:13:44 Financial Times lords Brown as the sun king of the oil industry. But behind the scenes, there's trouble at the growing fossil fuel giant. Amid the mass layoffs and the challenges of integrating its new acquisitions, vital institutional knowledge has been lost at BP. Safety standards begin to slip and environmental accidents increase. Soon, that all draws the attention of the United States Environmental Protection Agency. In the late 1990s, the EPA catches a BP subsidiary illegally releasing hazardous waste in Alaska. BP pleads guilty to criminal violations of the Clean Water Act and is ordered to pay a multi-million dollar fine. As part of its punishment, the company must also implement an environmental compliance program that includes five years of
Starting point is 00:14:30 probation under EPA supervision. If BP is deemed to have breached his commitments during this period, other penalties can be imposed, including even heftier fines and exclusion from all government contracts. One of the lawyers at the EPA assigned to the case is Gene Pascal. Her job is to evaluate whether BP is implementing its promises and adhering to the terms of its probation. As an EPA veteran of more than a decade, Pascal has worked with hundreds of companies across multiple sectors, and in her experience, most businesses are willing to change their behavior to avoid further punishment. And considering all that's at stake, Pascal is optimistic that BP will do the same. At first, that seems to be the case. BP executives proactively reach out to Pascal to discuss
Starting point is 00:15:15 their plans, and a few months later, they invite her up to Alaska to inspect the company's operations for herself. After getting off her plane, she's picked up by a BP company bus. She's not the only one on this tour. BP is running a junket for regulators and politicians, and the bus hums with conversation as it makes its way to the oil field. Pascal looks out the window. It's her first time in Alaska, and as she gazes across the flat, icy landscape,
Starting point is 00:15:44 she feels as if they could be driving across the moon. The bus then passes through a security checkpoint and enters the BP complex. Pascal and the other visitors get out. She takes a moment to look around. The scale of the operation here is vast. It's like BP has built a fortress at the end of the world. Miss Pascal? Pascal turns.
Starting point is 00:16:07 An executive she recognizes for meetings in Seattle, crunches across the snow toward her and shakes her hand with a gloved myth. He smiles. Well, welcome to Prudeau Bay. Ah, good to see you again. Augusta wind blows through the complex and Pascal shivers. The BP executive reaches into his backpack
Starting point is 00:16:24 and pulls out a thick BP-branded jacket. Hey, this is for you. You know, I was in Indonesia until a few months ago. Coming here was a shock to the system, I can tell you. I practically live in one of these jackets the first week. I even wore it to bed. Ascald gratefully takes the jacket and puts it on. Oh, God, thank you. Though, you know I'll need to return it. As a federal employee, I can't accept gifts. Oh, of course. But we can't have you...
Starting point is 00:16:47 On Boxing Day, 2018, 20-year-old Joy Morgan, was last seen at her church, Israel United in Christ, or I-UIC. And I just went on my Snapchat and I just see her face plastered everywhere. This is the missing sister, the true story of a woman betrayed by those she trusted most. IUC is my family and like the best family that I've ever had. But IUIC isn't like most churches. This is a devilish cult. You know when you get that feeling, man, you just, I don't want to be here. I want to get out.
Starting point is 00:17:21 It's like that feeling of like I want to go hang out. I'm Charlie Brink Coast Cuff and after year of investigating Joy's case, I need to know what really happened to Joy. Binge all episodes of The Missing Sister, exclusively an ad-free, right now on Wonderry Plus. Start your free trial of Wondery Plus on Spotify, Apple Podcasts, or in the Wondry app. In the 1880s, the lawless streets of Tombstone, Arizona, were home to the most legendary gunfight in history. Hi, I'm Lindsay Graham, the host of the podcast, America.
Starting point is 00:17:57 American history tellers. We take you to the events, times, and people that shaped America and Americans. Our values, our struggles and our dreams. In our latest series, we followed the notorious Earp brothers as they take on a band of gun-slinging hooligans intent on disrupting law and order. But tensions boiled over on October 26, 1881, when the Earps confronted the Clanton and McClury gangs near the OK Corral. In a hail of gunfire, three cowboys were killed, setting off a cycle of violence and retribution, transforming the herbs into both heroes and outlaws. Follow American History Tellers on the Wondry app, or wherever you get your podcasts. You can binge all episodes of American History Tellers, The Shootout at the OK Corral, early, and ad-free right now on Wondry Plus.
Starting point is 00:18:52 In the months that follow, her guys, visit to Alaska's Prudeau Bay, EPA lawyer Gene Pascal continues to find BP helpful and proactive. Senior executives keep her constantly updated on their progress, and they send almost weekly accounts that seem to include even the most minor infractions. Their transparency and desire to improve appear genuine, and Pascal is optimistic that the oil company is turning things around in Alaska. Things seem to be going so well that by mid-2003, executives of BP are pressing for early dismissal of their case. The company's probation period isn't due to expire until early 2005, but given BP's progress, Pascal sees no reason to object. She has her hands full
Starting point is 00:19:33 with other cases, and one less company to babysit wouldn't be a bad thing. So she tells BP that she will review the case and make a final decision in January 2004. But there are still problems in Alaska, and BP's leadership knows it. Back in 2001, executives commissioned an internal report. on safety concerns at Prudeau Bay. Its findings were damning. The report identified a fire suppression system that had been out of commission for six months, broken safety valves,
Starting point is 00:20:02 and a list of outstanding maintenance issues that just kept growing. Overzealous cost-cutting was blamed, along with a fundamental lack of trust in all levels of management. But in the year since, little has been done to address the problems, and the report's conclusions
Starting point is 00:20:17 have never been relayed to Jean Pascow. So as late as January 2004, Pascal has no idea of the reality on the ground in Alaska. But just days before the EPA is set to close the BP case and release the company from probation, Pascal gets a phone call at her office in Seattle. Hello, Gene Pascal speaking. Hi, Ms. Pascal, we haven't talked before. My name's Mark Kovac.
Starting point is 00:20:42 I'm a mechanical engineer at BP Alaska. Oh, well, what can I do for you, Mr. Kovac? Well, before I go any further, I need you to promise me that this conversation will stay between us. Oh, well, of course. I take this as about your employer? Yeah. Pascal picks up a pen. She gets calls like these occasionally from disgruntled employees who have a bone to pick with their bosses. They rarely lead to anything significant. Still, she doesn't want to sound dismissive.
Starting point is 00:21:07 Well, Mr. Kovac, I can assure you that this conversation will remain entirely confidential. Now, how can I be of hell? Well, I just saw an article in the Anchorage Daily saying that the EPA is about to end BP's probation early. Is that true? Well, nothing's been confirmed yet, but we are pleased with the progress the company's made. I can tell you that much. Huh. Well, I don't think it's a good idea. And what makes you say that? Well, if BP doesn't have the government breathing down his neck, there's no incentive for them to fix things. I understand your concerns, but based on what I'm hearing from BP and what I've seen for myself, it seems like they're doing everything they can.
Starting point is 00:21:40 Well, if I can be blunt, I don't think you understand how bad things are up here, Miss Pascal. How bad they are? In what way? I mean, I've been to Prudeau Bay. I didn't see any issues that gave. me serious concern. Well, you saw how big the place was, right? BP only shows you what they want you to see. You didn't see the corroded pipes, the falsified inspection data. The facility doesn't even have a working fire alarm system. I mean, an oil refinery without a fire alarm.
Starting point is 00:22:04 You can't make this stuff up. I'm telling you, the way things are going, there's going to be a catastrophic leak any day now. And, Ms. Pascal, look, I know that BP has been spinning you a good yarn. But that's all it is. I've been with this company since the 70s. and I can tell you it wasn't always like this. But these days, all BP cares about is finding new ways to cut costs. The equipment is aging out, and we're so short-staffed, working on this field, I'm actually scared for my life.
Starting point is 00:22:33 Pascal remained silent, tapping her pen on the notepad. On the other end of the line, Kovac seems to sense her doubt. You do believe me, right? Well, I certainly believe that this is how you feel. I'm not making anything up. I'm not saying you are. But Mr. Kobach, if I'm to act on allegations as serious as this, then I'm going to need some proof. Like what?
Starting point is 00:22:53 Well, such as more people coming forward who can back up your claims? Well, how many do you need? Because I can get them. If you want documents, I can get you those too. Just please, in the meantime, don't let BP go. I'm begging you. We folks on the ground are doing our best, but it's not enough. We need you. Jean Pascal hangs up the phone and sits back in her chair. If even half of what Mark Kovac says it's true, then Pascal can't ignore it. She decides against releasing BP from its probation early, but that still only gives her 12 months before the EPA's oversight of the company comes to an end.
Starting point is 00:23:29 And if things are as bad as Kovac is making out, the workers in Prudeau Bay might not even have that long. After this phone call with Mark Kovac, Jean Pascal receives other phone calls and emails from dozens of all. other concerned BP employees in Alaska. According to their accounts, BP has been lying to the EPA and flouting the turns of its probation from the very beginning. The whistleblowers tell Pascal how conditions in Prudeau Bay have deteriorated to the point
Starting point is 00:24:00 where workers fear for their safety and their emergency plans have been reduced to run for your lives. They describe deliberate attempts to mislead inspectors and detail the ways that management punishes anyone who complains about problems. anyone who speaks up is ignored, threatened, and in some cases even fired. These claims are incendiary, but they're all backed up with documents and internal emails. And as she digests the evidence, Pascal realizes that BP has been playing her for a fool, admitting to minor issues to distract her from the major ones.
Starting point is 00:24:34 At first, she feels angry and betrayed, but then she becomes determined to hold them accountable. But as an attorney, rather than an investigator, she doesn't have to be able to. have the authority to dig in to BP's internal affairs. So she decides she has no choice but to confront the company directly about the whistleblower's testimony. Either BP investigates the allegations itself or it risks breaking the terms of its probation with EPA. And when Pascal does confront the company, BP agrees to a full investigation and that Pascal's insistence hires a third party to run it. But when Pascal hears which legal firm BP has selected, she gets a sinking feeling. Back in 2001, this same firm was hired to conduct an internal investigation
Starting point is 00:25:18 into the troubled energy company Enron. They delivered a clean bill of health, but just months later, Enron collapsed in a multi-billion dollar fraud scandal. So Pascal doesn't have high hopes for the outcome of this new investigation at BP. Still, it's one of the few levers she has for holding the oil company to account, so she feels she has to at least try. It's October 2004, before Jean Pascal and her team hear the results of the internal investigation. They gather in a wood-paneled conference room at the Fairmont Hotel in Seattle. Sitting across the table from them are several BP executives and the lawyers who've conducted the inquiry. Pascal watches poker-faced as their findings are revealed. Things begin well. The lawyers highlight the culture of bullying they found
Starting point is 00:26:03 at Prudeau Bay amid relentless pressure to hit targets. They admit that the work sites in Alaska have been gripped by fear and that employees have at times faced retaliation when they've tried to voice their concerns. But then the lawyers changed tack. They pin the blame for this toxic culture on only one leader's overbearing management style before dismissing all of the whistleblower's other safety concerns point by point. They claim there's no evidence the oil field is unsafe or at risk of catastrophic failure and even accused original whistleblower Mark Kovac of deliberately spreading rumors and sowing mistrust among the workforce. The lawyers conclude that if BP is guilty of anything, it's only poor communication.
Starting point is 00:26:44 The real problem in Alaska is that the employees just don't understand the company's safety procedures. But with more training, they would see that their complaints were minor issues and certainly not worth the attention of the EPA. When the lawyer's presentation is over, Pascal and her EPA colleagues sit in stunned silence. I can't believe what they'd just heard. And when a BP executive asks for their thoughts, they can barely contain their rage, with one replying, I think it's about the same as when the Titanic sank, and the shipowner said it's against our policy to hit icebergs. For her part, Pascal expected the report to pull some punches, but this feels like a complete whitewash. Instead of taking responsibility,
Starting point is 00:27:27 BP has downplayed the issues in Alaska and pointed the finger at a few bad actors. But Pascal knows the truth. She may not have the power to formally investigate BP, but as she leaves this meeting, she vows that they won't get off so easily. She will hold BP accountable. And if she has to, she'll take her complaints all the way to the top of the U.S. government. How hard is it to kill a planet? Maybe all it takes is a little drilling, some mining, and a whole lot of carbon pumped into the atmosphere. When you see what's left, it starts to look like a crime scene. Are we really safe?
Starting point is 00:28:06 Is our water safe? You destroyed our time. And crimes like that, they don't just happen. We call things accidents. There is no accident. This was 100% preventable. They're the result of choices by people.
Starting point is 00:28:20 Ruthless oil tycoons, corrupt politicians, even organized crime. These are the stories we need to be telling about our changing planet. Stories of scams, murders, and cover-ups that are about us. and the things we're doing to either protect the earth or destroy it.
Starting point is 00:28:38 Follow Lawless Planet on the Wondry app or wherever you get your podcasts. You can listen to new episodes of Lawless Planet early and ad free right now by joining Wondry Plus in the Wondry app, Apple Podcasts, or Spotify. It's your man, Nick Cannon, and I'm here to bring you my new podcast, Nick Cannon, at night. I've heard y'all been needing some advice in the love department. So who better to help than yours truly? Now, I'm serious. Every week, I'm bringing out some of my celebrity friends and the best experts in the business
Starting point is 00:29:07 to answer your most intimate relationship questions. Having problems with your man, we got you. Catching feelings for your sneaky link? Let's make sure it's the real deal first. Ready to bring toys into the bedroom? Let's talk about it. Consider this a non-judgment zone to ask your questions when it comes to sex and modern dating in relationships, friendships, situationships, and everything in between.
Starting point is 00:29:29 It's going to be sexy, freaky, messy, and... you know what? You'll just have to watch this show. So don't be shy. Join the conversation and head over to YouTube to watch Nick Cannon at night or subscribe on the Wondery app or wherever you get your podcast. Want to watch episodes early and ad-free? Join Wondery Plus right now. and for EPA lawyer Gene Pascal, time is running out. Pascal has just two months before BP's probation period ends. If she doesn't act now, the EPA will lose any leverage it has over the company, and there will be no way to stop the disaster Pascal now fears is inevitable.
Starting point is 00:30:18 But it's not just time that's against Pascal. The political climate is not on her side either. The current U.S. president is former Texas oilman George W. Bush, and BP supplies up to 80 percent of the jet fuel for America's operations. in Iraq and Afghanistan. In such circumstances, there's little appetite in Washington to go after the oil company. But despite this, Pascal presses on. First, she brings her evidence to the EPA's Criminal Investigation Division in Seattle.
Starting point is 00:30:46 But the special agent in charge shuts her down. He doesn't appreciate Pascal stepping in on his turf, but eventually Pascal convinces him to at least send an investigator to Prudeau Bay. The visit turns out to be a washout. The agent fails to gain the workers' trust, and they refuse to talk to him. He returns to Seattle empty-handed and the special agent dismisses Pascal's claims.
Starting point is 00:31:08 But the EPA isn't the only organization tasked with policing oil company behavior. There are two other possibilities for Pascal to pursue. The first is the Minerals Management Service. The MMS is an agency based in Washington, D.C. That is supposed to monitor offshore oil drilling and enforce environmental protection laws at sea. Given BP's extensive investments in deep water drilling,
Starting point is 00:31:31 the MMS should be monitoring the company closely. But Pascal knows that the MMS isn't worth their time. Often, they act more like a cheerleader for the oil industry than a public watchdog. It approves drilling plans with minimal scrutiny, and there's almost a revolving door between the regulator and the companies it's meant to oversee. The relationship has become so cozy that a later White House report will accuse MMS officials of accepting gifts, free trips, and even drugs from oil company representatives. So if the EPA won't help her and the MMS can't help her, then there's just one hope left,
Starting point is 00:32:06 the United States Department of Justice. So with the clock ticking, in December 2004, Jean Pascal arranges a meeting with Tim Burgess, the U.S. attorney in Alaska, hoping he can bring charges against BP before disaster strikes. As Pascal strides through the hallways of the federal courthouse in Anchorage, her mouth goes dry. She hasn't expected to be this nervous, but there's a lot at stake for her and the workers at Prudeau Bay. When Pascal finds the right office, Burgess is already waiting for her. Come in. Ah, you must be Miss Pascal.
Starting point is 00:32:44 Burgess rises to shake her hand, then gestures to a seat. Pascal takes off her jacket, hangs it over the back of the chair, and then sits down. Thank you for seeing me, Judge Burgess. Well, you've come a long way. Well, I think this case is important. So if you don't mind, I'll get straight to business. Yeah, of course. You said this was about BP, so how can I help? Well, to put it bluntly, I believe BP is covering up dangers that could kill people. Haskell opens her briefcase and
Starting point is 00:33:10 extracts a folder. She hands it to Burgess who rifles through it as she explains. These documents all came from BP whistleblowers. They show pipelines, corroded to the point of failure, and BP's not fixing them. Instead, they're falsifying reports and intimidating anyone who speaks up. Burgess flicks through the folder and then looks up inquisitively. There are internal emails in here from BP dating back years. Yeah, and I've spoken to dozens of people at the plant. They're all terrified. A disaster is just waiting to happen, and they can't stop it. I ordered BP to run an internal investigation to see if I could shame them in taking action,
Starting point is 00:33:46 but they just used it as another opportunity to cover up the truth. Well, surely the EPA should be the ones looking into this, don't you think? Well, I've tried talking to our criminal investigation department. They just stonewall me. And the MMS is a dead end, too. Look, I don't mean to catastrophize, Judge Burgess, but it's clear to me now that if you don't act, the worst will happen. What do you mean by the worst?
Starting point is 00:34:07 A large spill, an exile and Valdez type situation? Or an explosion. Yeah, I'm worried that people are going to get hurt, killed even. Burgess clasps his fingers and then leans forward in his chair. Well, it's clear you've done your due diligence, Miss Pascal. And if half of what you're telling me is true, then BP's management deserves to have their feet, to the fire. But I'm going to level with you. Federal law is not on our side here. The environmental
Starting point is 00:34:31 statutes are designed to be reactive, not preventative. We can't move until someone bleeds or something spills. Telling me there's really nothing we can get them on? We can't catch a criminal before they commit the crime. That's the way our laws are written. There's no felony of intent to commit gross negligence. So that's it? We've just got to let it happen? Burgess shrugs. Well, believe me, I share your frustrations, but yeah, the only thing we can do, is wait. A few weeks later, on January 31st, 2005, BP's probation period expires, along with Gene Pascal's oversight.
Starting point is 00:35:08 BP is off the hook, and Pascal is left disappointed, angry, and exhausted. But there's one grim comfort she clings to. With the way things are going at Prudo Bay, Pascal is sure she won't have to wait long to go after BP again. And only 13 months later, on March 2, 2006, disaster strike. in Alaska. A corroded pipe ruptures at Prudeau Bay, spilling over 267,000 gallons of crude oil across two acres of Arctic tundra. It takes BP workers five days to even detect the leak, and by then it's already one of the largest onshore oil spills in Alaska in history.
Starting point is 00:35:45 Local officials predict it will take 10 years for wildlife to recover. But even as the cleanup begins in Alaska, thousands of miles away, another crisis is brewing. On March 23rd, just three weeks after the Prudeau Bay disaster, a BP oil refinery in Texas explodes. After a series of miscommunications between refinery employees, a cloud of gas escaped from an overflowing oil stack. Gas drifted toward a pickup truck, left idling nearby, and the heat from its engine ignited the gas cloud. The blast was heard for miles and left 15 people dead and 180 more injured. B.P. Blames this disaster on operator error and the actions of a few individuals. But an external investigation soon shows disturbing parallels between working conditions at the
Starting point is 00:36:35 Texas Refinery and those at Pruto Bay. A report identifies a familiar culture of corporate cost cutting, lacked safety programs, and evidence of workplace bullying. In the aftermath of the accident in Texas, BP pays out $2.1 billion in damages to the families of those killed. But that barely makes a dent in the company's annual earnings. In 2005 alone, BP makes profits of over 19 billion. People may be dying, but the strategy of BP CEO John Brown seems to be working. But he's not around much longer to toast his success. In May 2007, Brown resigns after press revelations about his personal life.
Starting point is 00:37:17 He's replaced by another British executive, Tony Hayward, a BP insider and one of Brown's inner circle. Still, Hayward promises reform, and at first, things seem to improve. Safety incidents declined, and fewer workers are injured on the job. But over at the EPA, Gene Pascal is far from convinced. Despite all Hayward's rhetoric, BP is still recording three times as many large spills as its nearest competitor. None of that seems to matter when the company is making billions in profit every year. Even the $370 million in fines BP is forced to pay for the incidents in a large. Alaska and Texas seems insignificant, but this October 2007 ruling also means BP is back
Starting point is 00:38:00 on EPA probation, and again, under Pascal's jurisdiction. Pascal doesn't hesitate. She quickly moves to debar BP, preventing them from applying for federal contracts, grants, and leases. In many ways, for BP, it would be more damaging than almost any other punishment. Debarment would prevent the company from selling billions of dollars worth of oil to the U.S. military, and it would stop BP from receiving new drilling leases on U.S. territory, cutting off its access to any future oil reserves. It's a harsh punishment, and within the EPA, debarment is seen as a last resort. But with BP's track record, Pascal now believes it's the only way the oil company is ever going to change, and she's
Starting point is 00:38:42 determined to be the one to nail them. On January 21, 2010, Pascal arrives at the EPA offices in Seattle to prep for an early morning meeting. Carrying her purse and pulling a roller bag behind her, she pushes the garage's elevator call button. The case to debar BP is nearly complete. Along with its convictions for the Texas refinery explosion and the oil spill in Prudow Bay, BP has also recently pleaded guilty to a felony
Starting point is 00:39:08 for manipulating the commodities market. Things in government move at a glacial pace, but Pascal is confident that with just a few more weeks of work, everything will be in place. Pascal taps her foot impatiently. Even government elevators seem to move slowly. Finally, the door opens and Pascal steps in. But as she does, she hears her Blackberry beep in her purse.
Starting point is 00:39:31 Momentarily distracted, her foot catches on the elevator door. Pascal yelps as she falls forward. Her head slams against the elevator wall, and she lands heavily on her side with her arm twisted underneath her. A sharp pain shoots through her shoulder. She moans and tries to roll. over, but finds she can't move. All she can do is call out desperately for help, but it's so early the office is quiet and at some time before another worker finds her. Eventually, Pascal is
Starting point is 00:40:00 carried out of the building and into an ambulance. Her meetings for the day are canceled. And at the hospital, a doctor tells Pascal that she'll be out of action for a while. It's one of the worst shoulder injuries he's ever seen. She's going to need surgery and months of recovery. But this is a critical time. So as she begins her rehabilitation, Pascal tries to keep working. But she can't type. She can't drive. And without her at the EPA to urge the case forward, the debarment of BP stalls. Pascal's decade-long struggle ends in failure, defeated by what seems to her like a cruel twist of fate. So frustrated, at the beginning of March 2010, Pascal hands in her retirement papers. She tries not to think about what the future may hold for BP. It's a very important. It's a
Starting point is 00:40:46 workers and everyone else who might suffer if the worst happens. But Pascal can't shake the feeling that her greatest fears will soon be confirmed and that another BP disaster is only a matter of time. From Wondering, this is episode one of Deepwater Horizon for American Scanning. In the next episode, when a new employee joins the Deepwater Horizon crew, he's told it's the safest rig in the world. But soon, equipment starts to fail and poor decisions mount up with disastrous consequences. If you're enjoying American scandal, you can unlock exclusive seasons on Wondry Plus. Binge new seasons first and listen completely ad-free when you join Wondry Plus in the Wondry app, Apple Podcasts, or Spotify. And before you go, tell us about yourself by filling out a survey at Wondry.com
Starting point is 00:41:43 slash survey. If you'd like to learn more about the deep water horizon oil spill, we recommend the books Run to Failure by Abram Lusgarth, a sea and flames by Carl Safina, and Fire on the Horizon by Tom Schroeder and John Conrad. This episode contains reenactments and dramatized details, and while in most cases we can't know exactly what was said, all our dramatizations are based on historical research. American Scandal is hosted, edited, and executive produced by me, Lindsay Graham for Airship. editing by Muhammad Shazid. Sound design by Gabriel Gould. Music by Thrum. This episode is written
Starting point is 00:42:18 in research by Lauren Sudden. Fact-checking by Alyssa Jung Perry. Managing producer Emily Burr. Development by Stephanie Jens. Senior producer Andy Beckerman. Executive producers are William Simpson for Airship and Jenny Lauer Beckman, Marshal Louis, and Erin O'Flaherty for Wondering. Thank you.

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