Wednesday, August 31, 2005

Good News/Bad News

There is some good news from the oil rigs in the Gulf. Overflights reveal bad damage to the Shell MARS rig, but others appear to have weathered Hurricane Katrina pretty well (at least on basis of the overflights). Crews will have to fly out to check the rigs and then determine their status. This might mean that the oil production from the Gulf of Mexico might resume quicker than earlier feared.

However, this doesn't mean that all is well, as the oil refineries where the oil pumped from the Gulf has to go are still being evaluated for storm damage. So a lack of refineries will continue to be a bottleneck for the foreseeable future.

Elsewhere, Congress has not cut short its summer recess. [See also my Vacation vs. Recess.] I make the point here that under the US Constitution (yes, that pesky document) that delegates to the US Congress the power to authorize appropriations. This isn't the job of the President, though he does have some discretionary funds that can be tapped.

Katrina requires far more than just the money in the discretionary funds. It will require a massive spending program. Consider just the infrastructure that needs to be rebuilt - numerous major bridges need replacement. Roadways washed out. Critical links, including airports will need to be repaired or replaced. The costs are going to run into the billions.

So, for those screaming that President Bush isn't working fast enough, I would suggest calling your Congressman and wondering why they're not back in D.C. passing appropriations to get the ball rolling on the recovery.

Of course, they might be waiting as well to see what the Red Cross, law enforcement, and local authorities determine to be necessary before acting at the federal level. Damage assessments need to be taken before a sense of the size of appropriations will be made.

The Internal Revenue Service has set up a page to deal with Katrina related tax issues. Specifically, the IRS states:
These taxpayers generally will have until Oct. 31, 2005, to file tax returns and submit tax payments. The IRS will abate interest and any late filing or late payment penalties that would otherwise apply. This relief includes the Sept. 15 due date for estimated taxes and for calendar-year corporate returns with automatic extensions.

“People affected by Hurricane Katrina have more than enough concerns –– taxes shouldn’t be among them,” said IRS Commissioner Mark W. Everson. “We hope the relief we are providing will help taxpayers in their financial recovery from this devastating storm.”

The disaster areas designated for individual relief include:

• 31 Louisiana parishes: Acadia, Ascension, Assumption, Calcasieu, Cameron, East Baton Rouge, East Feliciana, Iberia, Iberville, Jefferson, Jefferson Davis, Lafayette, Lafourche, Livingston, Orleans, Pointe Coupee, Plaquemines, St. Bernard, St. Charles, St. Helena, St. James, St. John, St. Mary, St. Martin, St. Tammany, Tangipahoa, Terrebonne, Vermilion, Washington, West Baton Rouge and West Feliciana;

• 15 Mississippi counties: Amite, Forrest, George, Greene, Hancock, Harrison, Jackson, Lamar, Marion, Pearl River, Perry, Pike, Stone, Walthall, and Wilkinson; and

• Three Alabama counties: Baldwin, Mobile and Washington.

Among the tax relief details are the following:

• The Federal Tax Deposit (FTD) Penalty Waiver Period for employment and excise tax deposits is Aug. 29 – Sept. 23, 2005.

• The Extension Period for returns and other tax payments is Aug. 29 – Oct. 31, 2005.

• The Disaster Designation for this area is “Hurricane Katrina” — taxpayers mark certain relief-related forms with this designation in red.
State taxes will be similarily affected. Here are the state websites with relevant information (though they may not have released hurricane related information as yet): Louisiana has Disaster Tax Relief, Mississippi, and Alabama.

UPDATE II:
Mudville Gazette has a fascinating roundup of the military's response to the hurricane. Specifically, this is the first test of NORTHCOM, which was established after 9/11 to handle threats to the continental US. Greyhawk reminds folks of the maxim that no plan survives first contact. Bear that in mind as the government moves forward in the relief efforts.

UPDATE III:
Paul of Wizbang! offers some timely advice to quit the bitching and focus on the relief efforts. Good suggestion. Paul himself is a victim of the hurricane. Too bad his commenters didn't bother to heed that advice.

UPDATE IV:
Via Baldy of LGF, CVS Pharmacy Says CVS Displaced Residents Can Get Meds Filled ANYWHERE (CVS Press Release) Other businesses are going to follow with efforts of their own.

Also, the water levels in New Orleans have stablized, which means that the Army Corps of Engineers might be able to get ahead of the flooding and being closing the levee breaches.

News continues to trickle in from areas not named New Orleans or Biloxi. Communities with obscure names like Slidell, Mandeville, and hundreds of others were completely devastated, and would be prominently featured in news reports because of the totality of the damage. However, because of the deluge in New Orleans, everything else got pushed off the radar. I will try to cull data from those other areas. If you need or have information on these areas, please let me know in the comments.

UPDATE IV, Part II:
Brendan Loy has more. Hattiesburg, MI is sheltering evacuees from nearby communities. The St. Bernard Command Center near Arabie, La., was destroyed.

Tunica-Biloxi Tribe opened its doors at the Paragon Casino and Resort to take in refugees from the storm.
She said the casino housed as many as 520 evacuees from seven parishes.

“You have people with medical needs-things like asthma- and we had to get doctors to help them. One lady is pregnant and we had to find a hospital bed for her. People’s lives continue but they fear for their jobs. Many of them will be destitute,” she said.
A press release from the casino yesterday notes that the casino is fully occupied, but that it will continue to function as an information clearinghouse.

Meanwhile, back in New Orleans, the evacuations continue and the situation at local hospitals is dire:
Tenet Healthcare Corp. said it was evacuating its 317-bed Memorial Medical Center and 187-bed Lindy Boggs Medical Center in New Orleans. The company's 203-bed Kenner Regional Medical Center in Kenner, 207-bed Meadowcrest Hospital in Gretna, and 174-bed NorthShore Regional Medical Center in Slidell remained open with back-up power but also suffered water and wind damage.


UPDATE V:
Here's the latest on Pascagoula, MI That city is home to a major naval facility, including dry docks and fabrication facilities. The BRAC recommended closing the >Pascagoula Naval Station in its August 25, 2005 session. The final decision on the closure will be made later this year.

Northrop had damage to its facilities on the Gulf but major ships managed to head out to sea to avoid Katrina.

DuPont is donating $1 million for the relief efforts.
... it will donate $1 million in cash to agencies supporting Hurricane Katrina relief and recovery efforts in Mississippi, Louisiana and Alabama. The company will focus its aid on particularly hard hit communities, such as those surrounding the DuPont DeLisle and Pascagoula sites, both in Mississippi.

DuPont also is prepared to provide product donations used in disaster relief, recovery and rebuilding, such as DuPont Personal Protection products containing Kevlar, Nomex and Tyvek high performance materials; Virkon S disinfectant; RelyOn disinfectant wipes; and Solae energy bars and soy beverages.
Expect other companies to follow, but other reports suggest that corporate donations will not follow the December 2004 tsunami model.

UPDATE VI:
Baton Rouge was hard hit by Katrina, as the list of streets closed due to downed trees and power lines, but I'm impressed with the fact that they actually were able to compile this list. This shows that local governments can do some impressive work when push comes to shove.

I hope my college friend and his family are okay. They just moved down there from VA (and before that upstate NY), and I'm thinking that they'd probably rather be sitting at home due to a blizzard or a nor'easter rather than a cat 4 storm any day.

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