F.D.A. Offers Rules to Stop Food Contamination





The Food and Drug Administration on Friday proposed two sweeping rules aimed at preventing the contamination of produce and processed foods, taking a long-awaited step toward codifying the food safety law that Congress passed two years ago.







Nicole Bengiveno/The New York Times

A new rule imposed by the F.D.A. would establish different standards for ensuring the purity of water that touches fruits and vegetables.







The proposed rules represent a sea change in the way the agency polices food, a process that currently involves swinging into action after food contamination has been identified rather than protecting against it before it hits grocery shelves.


“These new rules really set the basic framework for a modern, science-based approach to food safety and shifts us from a strategy of reacting to problems to a strategy for preventing problems,” Michael R. Taylor, deputy commissioner for foods and veterinary medicine at the F.D.A., said in an interview.


The F.D.A. is responsible for the safety of about 80 percent of the food that the nation consumes. The remainder of the burden falls to the Department of Agriculture, which is responsible for meat, poultry and some eggs. One in six Americans becomes ill from eating contaminated food each year, the government estimates; of those, roughly 130,000 are hospitalized and 3,000 die.


Congress passed the groundbreaking Food Safety Modernization Act in 2010 after a wave of incidents involving tainted eggs, peanut butter and spinach sickened thousands of people and led major food makers to join consumer advocates in demanding stronger government oversight.


But it took the Obama administration two years to move the rules through the F.D.A., prompting accusations by advocates that the White House was more concerned about protecting itself from Republican criticism than about public safety.


Mr. Taylor said, however, that the delay was a function of the wide variety of foods that the rules had to encompass and the complexity of the food system. “Anything that is important and complicated will always take longer than you would like,” he said.


The first rule would require manufacturers of processed foods sold in the United States to identify, adopt and carry out measures to reduce the risk of contamination. Food companies also would be required to have a plan for correcting any problems that might arise and for keeping records that F.D.A. inspectors could use for audit purposes.


One such preventive measure might be the roasting of raw peanuts at a temperature guaranteed to kill salmonella bacteria, which has been a problem in nut butters in recent years. Roasted nuts might then be sequestered from incoming raw nuts to further reduce the risk of contamination, said Sandra B. Eskin, director of the safe food campaign at the Pew Charitable Trusts.


“This is very good news for consumers,” Ms. Eskin said. “We applaud the administration’s action, which demonstrates its strong commitment to making our food safer.”


The second rule would apply to the harvesting and production of fruits and vegetables in an effort to combat the bacterial contamination that has arisen over the last decade, particularly from E. coli, a bacterium that is transmitted through feces. It would address what advocates refer to as the “four Ws” — water, waste, workers and wildlife.


Farmers would establish different standards for ensuring the purity of water that touches, say, lettuce leaves and the water used to saturate soil, which will only nourish plants through their roots.


A farm or plant where vegetables are packaged might, for example, add lavatories to ensure that workers do not urinate in fields and post signs similar to those in restaurants that remind employees to wash their hands.


The food industry cautiously applauded the arrival of the proposed rules, with most companies and industry groups noting that they would be poring over them and making comments as necessary in the coming weeks.


“Consumers expect industry and government to work together to provide Americans and consumers around the world with the safest possible products,” the Grocery Manufacturers Association said in a statement. “FSMA and its implementation effort can serve as a role model for what can be achieved when the private and public sectors work together to achieve a common goal.”


The association noted that the F.D.A. will have to issue more than 50 regulations to fully carry out the new law.


Read More..

F.D.A. Offers Rules to Stop Food Contamination





The Food and Drug Administration on Friday proposed two sweeping rules aimed at preventing the contamination of produce and processed foods, taking a long-awaited step toward codifying the food safety law that Congress passed two years ago.







Nicole Bengiveno/The New York Times

A new rule imposed by the F.D.A. would establish different standards for ensuring the purity of water that touches fruits and vegetables.







The proposed rules represent a sea change in the way the agency polices food, a process that currently involves swinging into action after food contamination has been identified rather than protecting against it before it hits grocery shelves.


“These new rules really set the basic framework for a modern, science-based approach to food safety and shifts us from a strategy of reacting to problems to a strategy for preventing problems,” Michael R. Taylor, deputy commissioner for foods and veterinary medicine at the F.D.A., said in an interview.


The F.D.A. is responsible for the safety of about 80 percent of the food that the nation consumes. The remainder of the burden falls to the Department of Agriculture, which is responsible for meat, poultry and some eggs. One in six Americans becomes ill from eating contaminated food each year, the government estimates; of those, roughly 130,000 are hospitalized and 3,000 die.


Congress passed the groundbreaking Food Safety Modernization Act in 2010 after a wave of incidents involving tainted eggs, peanut butter and spinach sickened thousands of people and led major food makers to join consumer advocates in demanding stronger government oversight.


But it took the Obama administration two years to move the rules through the F.D.A., prompting accusations by advocates that the White House was more concerned about protecting itself from Republican criticism than about public safety.


Mr. Taylor said, however, that the delay was a function of the wide variety of foods that the rules had to encompass and the complexity of the food system. “Anything that is important and complicated will always take longer than you would like,” he said.


The first rule would require manufacturers of processed foods sold in the United States to identify, adopt and carry out measures to reduce the risk of contamination. Food companies also would be required to have a plan for correcting any problems that might arise and for keeping records that F.D.A. inspectors could use for audit purposes.


One such preventive measure might be the roasting of raw peanuts at a temperature guaranteed to kill salmonella bacteria, which has been a problem in nut butters in recent years. Roasted nuts might then be sequestered from incoming raw nuts to further reduce the risk of contamination, said Sandra B. Eskin, director of the safe food campaign at the Pew Charitable Trusts.


“This is very good news for consumers,” Ms. Eskin said. “We applaud the administration’s action, which demonstrates its strong commitment to making our food safer.”


The second rule would apply to the harvesting and production of fruits and vegetables in an effort to combat the bacterial contamination that has arisen over the last decade, particularly from E. coli, a bacterium that is transmitted through feces. It would address what advocates refer to as the “four Ws” — water, waste, workers and wildlife.


Farmers would establish different standards for ensuring the purity of water that touches, say, lettuce leaves and the water used to saturate soil, which will only nourish plants through their roots.


A farm or plant where vegetables are packaged might, for example, add lavatories to ensure that workers do not urinate in fields and post signs similar to those in restaurants that remind employees to wash their hands.


The food industry cautiously applauded the arrival of the proposed rules, with most companies and industry groups noting that they would be poring over them and making comments as necessary in the coming weeks.


“Consumers expect industry and government to work together to provide Americans and consumers around the world with the safest possible products,” the Grocery Manufacturers Association said in a statement. “FSMA and its implementation effort can serve as a role model for what can be achieved when the private and public sectors work together to achieve a common goal.”


The association noted that the F.D.A. will have to issue more than 50 regulations to fully carry out the new law.


Read More..

Wealth Matters: The End of a Decade of Uncertainty Over Gift and Estate Taxes





FOR many of the wealthy, the American Taxpayer Relief Act, passed this week by Congress, is aptly named.




For estate and gift taxes in particular, all but the richest of the rich will probably be able to protect their holdings from taxes, now that Congress has permanently set the estate and gift tax exemptions at $5 million (a level that will rise with inflation).


“You could say this eliminates the estate tax for 99 percent of the population, though I’ve seen figures that say 99.7 or 99.8,” said Richard A. Behrendt, director of estate planning at the financial services firm Baird and a former inspector for the Internal Revenue Service. “From a policy point of view, the estate tax is not there for raising revenue. It’s there for a check on the massive concentration of wealth in a few hands, and it will still accomplish that.”


And while Congress also agreed to increase tax rates on dividends and capital gains to 20 percent from 15 percent for top earners — in addition to the 3.8 percent Medicare surcharge on such earnings — the rates are still far lower than those on their ordinary income. For the earners at the very top, whose income comes mostly from their portfolios of investments, and not a paycheck like most of the rest of us, this is a good deal.


The estate tax, once an arcane assessment, has been in flux and attracting significant attention since 2001. That was when the exemption per person for the estate tax began to rise gradually from $675,000, with a 55 percent tax for anything above that amount, to $3.5 million in 2009 with a 45 percent tax rate for estates larger than that. Estate plans were written to account for the predictable increases in exemptions.


Then in 2010, contrary to what every accountant and tax lawyer I spoke to at the time believed would happen, the estate tax disappeared. Congress and President Obama could not reach an agreement on the tax. So that year, for the first time since 1916, Americans who died were not subject to a federal estate tax. (Their estates still paid state estate taxes, where they existed, and other taxes, including capital gains, on the value of the assets transferred.)


At the end of 2010, President Obama and House Speaker John A. Boehner reached an agreement that was just as unlikely as the estate tax expiring in the first place: the new exemption was $5 million, indexed to inflation, with a 35 percent tax rate on any amount over that, and it would last for two years. The taxes and exemptions for gifts made during someone’s lifetime to children and grandchildren were also raised to the same level, from $1 million and a 55 percent tax above that.


As I have written many times, this was a far better rate and exemption than anyone expected. It also created a deadline of Dec. 31, 2012, for people who could make a major gift up to the exemption level or above the amount and pay the low gift tax.


Using the gift exemption was enticing because it meant those assets would appreciate outside of the estate of the person making the gift. Even paying the tax became attractive to the very rich because of how estate and gift taxes are levied. Take, for example, someone who has used up his exemption and wants to give an heir $1 million. The amount it would take to accomplish this differs depending on when it is given. In life, it would cost $1.4 million because the 40 percent gift tax is paid like a sales tax. If it was given after death, the estate would have to set aside about $1.65 million after the 40 percent estate tax was deducted. But this presented a conundrum: while it may make perfect sense to give away a lot of money during your lifetime and save on estate taxes, it means ceding control of cash, securities or shares now. What if you end up needing them? It wasn’t an easy decision, and it led to a fourth-quarter rush.


As of this week, this is no longer an issue. The estate and gift tax exemptions are permanently set at the same $5 million level, indexed for inflation, and the tax rate above that exemption is 40 percent, up from 35 percent. With indexing, the exemption is already about $5.25 million per person — double for a couple — and it will rise at a rate that means most Americans will continue to avoid paying any federal estate tax.


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Attacks in Iraq Kill at Least 32 Pilgrims





BAGHDAD — Attackers killed at least 32 pilgrims in Iraq on Thursday, the police said, in what appeared to be a spate of sectarian-motivated violence as the country continued to struggle with a political crisis in its fractured government.




At the culmination of one of Shiite Islam’s holiest rituals, at least 28 people were killed and 35 were wounded when a car bomb exploded in central Musayyib, a police official in Babil Province said. The apparent targets were pilgrims returning from the holy city of Karbala, where Shiites observe the end of the 40-day annual mourning period for the death of Imam Hussein ibn Ali, a grandson of the Prophet Muhammad.


In another attack in southeast Baghdad, a roadside bomb exploded as a minibus carrying Shiite pilgrims passed, killing 4 people and wounding 15, the police said.


The Shiite pilgrimage to commemorate the imam’s death, banned while Saddam Hussein ruled Iraq, has flourished since the American-led invasion overthrew him in 2003. Millions travel to Karbala, where the imam is buried, or to neighboring areas each year. Attacks on the pilgrims reflect some of the sectarian frictions that have plagued Iraq in recent years. At least 27 people were killed in 2010; about 52 in 2011; and 53 in 2012 in attacks related to the pilgrimage.


Tensions have mounted in recent weeks with demonstrations in Sunni-dominated areas against the Shiite-dominated government of Prime Minister Nuri Kamal al-Maliki. On Thursday, protesters in Ramadi continued to block some main trade routes leading to Syria and Jordan, and there were demonstrations in Salahuddin and Kirkuk as well.


Some progress may have been achieved this week on one of the demonstrators’ demands. A Justice Ministry official said Thursday that a committee instructed by Mr. Maliki to investigate the cases of female prisoners announced that 11 of them would be released, in addition to 2 teenagers. Other female prisoners will be transferred to locations in their home provinces.


It was not clear whether the steps would do much to calm tempers inflamed after a raid last month by security forces on the office and home of the Sunni finance minister, Rafie al-Issawi, and the arrest of 10 bodyguards, fueling accusations that Mr. Maliki was moving to monopolize power and sideline his political opponents before provincial elections scheduled for the spring.


Sadoun Obeid al-Shalan, the deputy chairman of the provincial council in Anbar, where most of the protests have been held, said that three of the released detainees were from that province. “The protesters have welcomed the initiative and demanded the release of the others,” he said.


Mr. Maliki, who appeared on state television on Thursday marching alongside some of the Shiite pilgrims, told demonstrators this week to stop their protests or face government action, saying they had been exploited by various groups for their own interests to the detriment of national unity. His critics, including the Shiite leader Moktada al-Sadr, have said that Mr. Maliki alone is responsible for provoking the unrest.


The speaker of Iraq’s Parliament, Osama al-Nujaifi, lashed out in a statement on Thursday against what he called Mr. Maliki’s threats, saying that “the people” were Iraq’s highest authority after the end of the former government.


Yasir Ghazi reported from Baghdad, and Christine Hauser from New York.



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Media Decoder Blog: Decline in Holiday Sales Is Ominous Sign for Barnes & Noble

4:41 p.m. | Updated For Barnes & Noble, the digital future isn’t what it used to be.

Eight months after affirming its commitment to build its business through its Nook division, Barnes & Noble on Tuesday announced holiday sales so disappointing that it raised questions about the company’s ability to pull off the transformation from its traditional retail format.

Retail sales from the company’s bookstores and its Web site, BN.com, decreased 10.9 percent from the comparable nine-week holiday period a year earlier, to $1.2 billion, the company reported. More worrisome for the long-term future of the company, sales for the company’s Nook unit — which includes e-readers, tablets, digital content and accessories — decreased 12.6 percent over the same period.

“They are not selling the devices, they are not selling books and traffic is down,” said Michael Shatzkin, the founder and chief executive of Idea Logical Company, a consultant to publishers. “I’m looking for an optimistic sign and not seeing one. It is concerning.”

Though the company’s stock was down only slightly — 1.4 percent in late trading — the reaction in the financial world was swift and unforgiving.

S&P Capital IQ downgraded its recommendation on Barnes & Noble stock from hold to sell and said in a note that “we think this portends greater market share losses for the Nook over the medium term.” Barclays said in a note that the Nook’s precipitous decline was “quite concerning” and “below even our modest expectations.”

Barnes & Noble, the nation’s largest book chain, has invested heavily in recent years in developing a tablet that could compete with offerings from media giants like Google, Apple and Amazon.com. Last April, in announcing a $300 million investment from Microsoft, William Lynch, Barnes & Noble’s chief executive, said the company wanted “to solidify our position as a leader in the exploding market for digital content in the consumer and education segments.”

A few months later, the bookseller began breaking out the financial results of its Nook division, and three months ago it completed its strategic partnership with Microsoft in Nook Media L.L.C., a subsidiary, in a signal that it was ready to ride its digital business into the future.

But the performance of the Nook division has been uneven at best. While Barnes & Noble’s most recent products have won critical praise, the disappointing Nook sales figures — especially during what is supposed to be a peak buying season — underscore how difficult the challenge has been in an increasingly competitive e-reading landscape.

While other companies do not break out sales of their digital tablets, Amazon has been saying that sales of its Kindle Fire have been very strong. Analysts say Apple’s iPads also appear to be doing well.

“The problem is not whether or not the Nook is good,” said James L. McQuivey, a media analyst for Forrester Research. “What matters is whether you are locked into a Kindle library or an iTunes library or a Nook library. In the end, who holds the content that you value?”

For an increasing number of consumers, he said, the answer was not Barnes & Noble.

The declining retail sales were also troubling, especially when viewed in the context of a rise in sales among independent booksellers. The American Book Sellers Association, which has not yet released official holiday sales, estimated on Thursday that its members would be up about 8 percent over last year.

Analysts stopped short of saying that this was a do or die moment for Barnes & Noble’s Nook Media division, but they acknowledged that options for a strong digital future were narrowing.

Executives from Barnes & Noble were not available to discuss the sales numbers. But a statement from Mr. Lynch, its chief executive, indicated the extent to which the company was searching for a solution to what went wrong.

“Nook device sales got off to a good start over the Black Friday period, but then fell short of expectations for the balance of holiday,” Mr. Lynch said. “We are examining the root cause of the December shortfall in sales, and will adjust our strategies accordingly going forward.”

The most intriguing, and troublesome, question is whether the company can stay in the digital device business at all over the long run. Nook has been expensive to develop and market and the company does not have the hefty financial resources of its competitors.

Other options are strategic partnerships. Microsoft’s investment last spring was seen at the time as a way to promote Nook through a powerful partner. But sales of the Windows 8 operating system have been disappointing and the Nook has been featured as little more than an app among hundreds on the Windows 8 platform.

“It is going to prove to be a missed opportunity,” Forrester’s Mr. McQuivey said.

Last month, Barnes & Noble announced that Pearson, the British education and publishing conglomerate, was taking a 5 percent stake in Nook for $89.5 million. Analysts said that that cash investment was welcome and the partnership with Pearson, a major publisher of educational textbooks, might herald a strategy to move toward dominating an education niche market. Still, that would be a significantly smaller business.

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Scant Proof Is Found to Back Up Claims by Energy Drinks





Energy drinks are the fastest-growing part of the beverage industry, with sales in the United States reaching more than $10 billion in 2012 — more than Americans spent on iced tea or sports beverages like Gatorade.




Their rising popularity represents a generational shift in what people drink, and reflects a successful campaign to convince consumers, particularly teenagers, that the drinks provide a mental and physical edge.


The drinks are now under scrutiny by the Food and Drug Administration after reports of deaths and serious injuries that may be linked to their high caffeine levels. But however that review ends, one thing is clear, interviews with researchers and a review of scientific studies show: the energy drink industry is based on a brew of ingredients that, apart from caffeine, have little, if any benefit for consumers.


“If you had a cup of coffee you are going to affect metabolism in the same way,” said Dr. Robert W. Pettitt, an associate professor at Minnesota State University in Mankato, who has studied the drinks.


Energy drink companies have promoted their products not as caffeine-fueled concoctions but as specially engineered blends that provide something more. For example, producers claim that “Red Bull gives you wings,” that Rockstar Energy is “scientifically formulated” and Monster Energy is a “killer energy brew.” Representative Edward J. Markey of Massachusetts, a Democrat, has asked the government to investigate the industry’s marketing claims.


Promoting a message beyond caffeine has enabled the beverage makers to charge premium prices. A 16-ounce energy drink that sells for $2.99 a can contains about the same amount of caffeine as a tablet of NoDoz that costs 30 cents. Even Starbucks coffee is cheap by comparison; a 12-ounce cup that costs $1.85 has even more caffeine.


As with earlier elixirs, a dearth of evidence underlies such claims. Only a few human studies of energy drinks or the ingredients in them have been performed and they point to a similar conclusion, researchers say — that the beverages are mainly about caffeine.


Caffeine is called the world’s most widely used drug. A stimulant, it increases alertness, awareness and, if taken at the right time, improves athletic performance, studies show. Energy drink users feel its kick faster because the beverages are typically swallowed quickly or are sold as concentrates.


“These are caffeine delivery systems,” said Dr. Roland Griffiths, a researcher at Johns Hopkins University who has studied energy drinks. “They don’t want to say this is equivalent to a NoDoz because that is not a very sexy sales message.”


A scientist at the University of Wisconsin became puzzled as he researched an ingredient used in energy drinks like Red Bull, 5-Hour Energy and Monster Energy. The researcher, Dr. Craig A. Goodman, could not find any trials in humans of the additive, a substance with the tongue-twisting name of glucuronolactone that is related to glucose, a sugar. But Dr. Goodman, who had studied other energy drink ingredients, eventually found two 40-year-old studies from Japan that had examined it.


In the experiments, scientists injected large doses of the substance into laboratory rats. Afterward, the rats swam better. “I have no idea what it does in energy drinks,” Dr. Goodman said.


Energy drink manufacturers say it is their proprietary formulas, rather than specific ingredients, that provide users with physical and mental benefits. But that has not prevented them from implying otherwise.


Consider the case of taurine, an additive used in most energy products.


On its Web site, the producer of Red Bull, for example, states that “more than 2,500 reports have been published about taurine and its physiological effects,” including acting as a “detoxifying agent.” In addition, that company, Red Bull of Austria, points to a 2009 safety study by a European regulatory group that gave it a clean bill of health.


But Red Bull’s Web site does not mention reports by that same group, the European Food Safety Authority, which concluded that claims about the benefits in energy drinks lacked scientific support. Based on those findings, the European Commission has refused to approve claims that taurine helps maintain mental function and heart health and reduces muscle fatigue.


Taurine, an amino acidlike substance that got its name because it was first found in the bile of bulls, does play a role in bodily functions, and recent research suggests it might help prevent heart attacks in women with high cholesterol. However, most people get more than adequate amounts from foods like meat, experts said. And researchers added that those with heart problems who may need supplements would find far better sources than energy drinks.


Hiroko Tabuchi contributed reporting from Tokyo and Poypiti Amatatham from Bangkok.



Read More..

Scant Proof Is Found to Back Up Claims by Energy Drinks





Energy drinks are the fastest-growing part of the beverage industry, with sales in the United States reaching more than $10 billion in 2012 — more than Americans spent on iced tea or sports beverages like Gatorade.




Their rising popularity represents a generational shift in what people drink, and reflects a successful campaign to convince consumers, particularly teenagers, that the drinks provide a mental and physical edge.


The drinks are now under scrutiny by the Food and Drug Administration after reports of deaths and serious injuries that may be linked to their high caffeine levels. But however that review ends, one thing is clear, interviews with researchers and a review of scientific studies show: the energy drink industry is based on a brew of ingredients that, apart from caffeine, have little, if any benefit for consumers.


“If you had a cup of coffee you are going to affect metabolism in the same way,” said Dr. Robert W. Pettitt, an associate professor at Minnesota State University in Mankato, who has studied the drinks.


Energy drink companies have promoted their products not as caffeine-fueled concoctions but as specially engineered blends that provide something more. For example, producers claim that “Red Bull gives you wings,” that Rockstar Energy is “scientifically formulated” and Monster Energy is a “killer energy brew.” Representative Edward J. Markey of Massachusetts, a Democrat, has asked the government to investigate the industry’s marketing claims.


Promoting a message beyond caffeine has enabled the beverage makers to charge premium prices. A 16-ounce energy drink that sells for $2.99 a can contains about the same amount of caffeine as a tablet of NoDoz that costs 30 cents. Even Starbucks coffee is cheap by comparison; a 12-ounce cup that costs $1.85 has even more caffeine.


As with earlier elixirs, a dearth of evidence underlies such claims. Only a few human studies of energy drinks or the ingredients in them have been performed and they point to a similar conclusion, researchers say — that the beverages are mainly about caffeine.


Caffeine is called the world’s most widely used drug. A stimulant, it increases alertness, awareness and, if taken at the right time, improves athletic performance, studies show. Energy drink users feel its kick faster because the beverages are typically swallowed quickly or are sold as concentrates.


“These are caffeine delivery systems,” said Dr. Roland Griffiths, a researcher at Johns Hopkins University who has studied energy drinks. “They don’t want to say this is equivalent to a NoDoz because that is not a very sexy sales message.”


A scientist at the University of Wisconsin became puzzled as he researched an ingredient used in energy drinks like Red Bull, 5-Hour Energy and Monster Energy. The researcher, Dr. Craig A. Goodman, could not find any trials in humans of the additive, a substance with the tongue-twisting name of glucuronolactone that is related to glucose, a sugar. But Dr. Goodman, who had studied other energy drink ingredients, eventually found two 40-year-old studies from Japan that had examined it.


In the experiments, scientists injected large doses of the substance into laboratory rats. Afterward, the rats swam better. “I have no idea what it does in energy drinks,” Dr. Goodman said.


Energy drink manufacturers say it is their proprietary formulas, rather than specific ingredients, that provide users with physical and mental benefits. But that has not prevented them from implying otherwise.


Consider the case of taurine, an additive used in most energy products.


On its Web site, the producer of Red Bull, for example, states that “more than 2,500 reports have been published about taurine and its physiological effects,” including acting as a “detoxifying agent.” In addition, that company, Red Bull of Austria, points to a 2009 safety study by a European regulatory group that gave it a clean bill of health.


But Red Bull’s Web site does not mention reports by that same group, the European Food Safety Authority, which concluded that claims about the benefits in energy drinks lacked scientific support. Based on those findings, the European Commission has refused to approve claims that taurine helps maintain mental function and heart health and reduces muscle fatigue.


Taurine, an amino acidlike substance that got its name because it was first found in the bile of bulls, does play a role in bodily functions, and recent research suggests it might help prevent heart attacks in women with high cholesterol. However, most people get more than adequate amounts from foods like meat, experts said. And researchers added that those with heart problems who may need supplements would find far better sources than energy drinks.


Hiroko Tabuchi contributed reporting from Tokyo and Poypiti Amatatham from Bangkok.



Read More..

Deepwater Horizon Owner Settles With U.S. Over Oil Spill in Gulf of Mexico





The driller whose floating Deepwater Horizon oil rig blew out in 2010 to cause the nation’s biggest oil spill has agreed to settle civil and criminal claims with the federal government for $1.4 billion, the Justice Department announced Thursday.




The Deepwater Horizon exploded, burned and sank in April 2010. Eleven men were killed and millions of gallons of oil flowed into the Gulf of Mexico and fouled the shores of coastal states. The Macondo well was owned by British oil giant BP, which settled its own criminal charges and some of its civil charges in November for $4.5 billion.


While this settlement resolves the government’s claims against Transocean, that company and the others involved in the spill still face the sprawling, multistate civil case, which is scheduled to begin in February in New Orleans. In a deal filed in federal court in New Orleans, a subsidiary, Transocean Deepwater, agreed to one criminal misdemeanor violation of the Clean Water Act and will pay a fine of $100 million. Over the next five years, the company will pay record civil penalties of $1 billion under the act. Transocean also agreed to pay the National Academy of Sciences and the National Fish and Wildlife Foundation $150 million each. Those funds will be applied to oil spill prevention and response in the Gulf of Mexico and natural resource restoration projects. The agreement will be subject to public comment and court approval. The company agreed to five years of monitoring of its drilling practices and improved safety measures.


In a statement, Transocean Ltd., the Switzerland-based parent of the rig owner, said that the company thought these were “important agreements” and called them a “positive step forward” that were “in the best interest of its shareholders and employees.” Of the 11 men killed on the rig, the company said, “Their families continue to be in the thoughts and prayers of all of us at Transocean.”


The company announced in September that it had set an “estimated loss contingency” of $1.5 billion against the Justice Department’s claims.


Shares of Transocean Ltd. rose nearly 3 percent on the news, to close at $49.20.


In a statement, Lanny A. Breuer, assistant attorney general for the Justice Department’s Criminal Division, seemed to suggest that Transocean played a subservient and lesser role in the disaster to that of BP: “Transocean’s rig crew accepted the direction of BP well site leaders to proceed in the face of clear danger signs — at a tragic cost to many of them.” He said that the $1.4 billion “appropriately reflects its role in the Deepwater Horizon disaster.”


Under a law passed last year, 80 percent of the penalty will be applied to projects for restoring the environment and economies of Gulf states.


That fact was applauded by a coalition of Gulf coast restoration groups, including the Environmental Defense Fund and the National Audubon Society. A joint statement called this “a great day for the Gulf environment and the communities that rely on a healthy ecosystem for their livelihoods.”


Still, the penalty struck some experts in environmental law as somewhat light. David M. Uhlmann, who headed the Justice Department’s environmental crimes section from 2000 to 2007, praised the size of the civil settlement, which he said “reflects the scope of the Gulf oil spill tragedy.”


He argued, however, that the criminal penalty should have been at least as onerous, “given Transocean’s numerous failures to drill in a safe manner, which cost 11 workers their lives and billions of dollars in damages to communities along the Gulf.” The settlement, he said, should have included seaman’s manslaughter charges, which were part of the BP settlement.


As for the company’s role in following the lead of BP, he said, “following orders is not a defense to criminal charges.”


At the Environmental Protection Agency, Cynthia Giles, assistant administrator for the office of enforcement and compliance assurance, called the settlement “an important step” toward holding Transocean and others involved in the spill accountable. “E.P.A. will continue to work with D.O.J. and its federal partners to vigorously pursue the government’s claims against all responsible parties and ensure that we are taking every possible step to restore and protect the Gulf Coast ecosystem,” she said.


The multistate trial over claims in the Deepwater Horizon cases that have not been settled are scheduled to begin in February. Stephen J. Herman and James P. Roy, lawyers who represent the steering committee of plaintiffs in the cases, said that Thursday’s settlement did not change the case, and that the plaintiffs thought that BP, Transocean and Halliburton “will be found grossly negligent” at trial.


For its part, BP continued its longstanding argument that the accident, in the words of the spokesman Geoff Morrell, “resulted from multiple causes, involving multiple parties,” and that other companies had to shoulder their share of the blame. Transocean, Mr. Morrell said in a statement, “is finally starting, more than two-and-a-half years after the accident, to do its part for the Gulf Coast.” He then turned his attention to the other major contractor on the well, and said, “Unfortunately, Halliburton continues to deny its significant role in the accident, including its failure to adequately cement and monitor the well.”


Beverly Blohm Stafford, a Halliburton spokeswoman, said that the company “remains confident that all the work it performed with respect to the Macondo well was completed in accordance with BP’s specifications for its well construction plan and instructions,” and so Halliburton, she said was protected from liability through indemnity provisions of its drilling contract. “We continue to believe that we have substantial legal arguments and defenses against any liability and that BP’s indemnity obligation protects us,” she said. “Accordingly we will maintain our approach of taking all proper actions to protect our interests.”


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Dozens of Syrians Killed in Explosions Around Damascus


Andoni Lubaki/Associated Press


Rebel fighters patrol a neighborhood in Aleppo on Wednesday.







BEIRUT, Lebanon — Dozens of Syrians were killed or wounded in an explosion at a gas station east of Damascus, the Syrian capital, on Wednesday, and explosions in another Damascus suburb killed at least six people and wounded many more, including women and children, according to videos and reports from antigovernment activists.




The violence came as the United Nations released a study showing that more than 60,000 people had been killed in Syria’s 22-month-old conflict, a third higher than estimates by antigovernment activist groups.


Also on Wednesday, the family of James Foley, a reporter for the Global Post Web site, announced that Mr. Foley had been kidnapped on Nov. 22 by unidentified gunmen in northwest Syria. Mr. Foley had survived an abduction in Libya while covering the conflict there.


A recent flurry of diplomatic activity by Russia, the United Nations’ special envoy and others aimed at finding a political solution appeared to founder in recent days as neither Bashar al-Assad, the Syrian president, nor his opponents expressed a willingness to make concessions to end the bloody conflict.


The explosion near Damascus, which witnesses blamed on an airstrike, took place in a heavily contested suburban area. It hit a gas station where scores of people had lined up for fuel, which had just become available there after about a month, residents said. Videos posted by antigovernment activists showed charred bodies.


One man, using the nickname Abu Fuad, said in a telephone interview that he had just filled up his gas tank and was driving away when he heard the screech of fighter jets.


He was less than a quarter mile away when he heard the explosions, he said.


“There were many cars waiting their turn,” he said. “Yesterday, we heard that the government sent fuel to the gas station here, so all the people around came to fill up their cars.”


In a sign of the depth of distrust the conflict has spawned, Abu Fuad suggested that restocking the station was a government ruse. “They sent fuel as a trap,” he said.


In northern Syria, rebels used rockets to attack the Taftanaz military airport, a long-contested area in the province of Idlib, activists reported. Rebels have also stepped up attacks on airports in the neighboring province of Aleppo, trying to disrupt the warplanes and helicopters that government forces increasingly rely on for attacks, and even for supply lines, in the north.


The United Nations study suggested that the human toll of the war was even greater than previously estimated. Two days ago, the Syrian Observatory for Human Rights, a rebel group that tracks the war from Britain, reported 45,000 deaths, mostly civilian, since the conflict began in March 2011.


“The number of casualties is much higher than we expected, and is truly shocking,” the United Nations high commissioner for human rights, Navi Pillay, said in a statement after her agency released the study.


“We must not compound the existing disaster by failing to prepare for the inevitable — and very dangerous — instability that will occur when the conflict ends,” she added. To avoid repeating the experience of collapsed states like Afghanistan, Iraq and Somalia, she said, “serious planning needs to get under way immediately, not just to provide humanitarian aid to all those who need it, but to protect all Syrian citizens from extrajudicial reprisals and acts of revenge.”


The study’s surprisingly high death toll reflected only those killings in which victims had been identified by their full name, and the date and location of their death had been recorded, leaving the possibility of many more dead.


Independent researchers compiled reports of more than 147,000 killings in Syria’s conflict from seven sources, including the government. When duplicates were removed, there remained a list of 59,648 people killed between March 2011 and the end of November.


Meanwhile, John Foley, James Foley’s father, stressed that his son was an “objective journalist” and issued a plea to his captors to contact the family so that they can work for his release.


“We want Jim to come safely home, or at least we need to speak with him to know he’s O.K.,” John Foley said. “Jim is an objective journalist and we appeal for the release of Jim unharmed. To the people who have Jim, please contact us so we can work together toward his release.”


Hwaida Saad contributed reporting.



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Tool Kit: Facebook’s Latest Mobile Interface Expands Features





The only thing constant about Facebook is that it keeps changing. Just when you think you’ve figured out the interface to the world’s biggest social network, the engineers there update it again.




For the 600 million or so people who use their smartphones to stay on top of Facebook friends, recent weeks have been especially anxiety-producing. Recognizing some time ago that for many mobile users their Facebook phone app is their primary or only way of access, the company unveiled a barrage of new features that bring the mobile apps in line with the desktop browser version of Facebook.


Facebook created new versions of its official apps for Android and Apple phones and revamped its mobile-optimized Web site, m.facebook.com, which works for most other smartphones. Facebook says the mobile site actually has more users than the Android and Apple apps combined.


Some new features are easy to spot. Friends’ posts now include a Share option so you can repost their updates, pictures and links to your own timeline. But other features are more subtle, and take some poking around to figure out. I’m here to help.


The most significant change to Facebook’s mobile apps is that the News Feed, the real-time stream of updates from your Facebook friends, now provides the same sorting options as the desktop version: Top Stories and Most Recent. If you go a while without logging in, the app will set the sorting to Top Stories, which floats the updates from the friends with whom you interact the most to the top of the feed. If you’d rather see posts sorted with the newest always on top, tap the gear icon next to News Feed on the app’s main left-hand menu. (It can take a little practice to tap the gear rather than another control). This will pop up a menu that lets you choose your sorting preference.


Your photos now have a Make Profile Picture option, so you don’t need to go back to a full-size computer to turn a photo taken on your phone into your identifying image. With an iPhone, press and hold the picture to bring up the command; in Android phones, it’s an option in the overflow menu.


Facebook has also built its chat function into the mobile apps. Rather than the e-mail-like Message utility, Chat is designed for conversations in which both parties tap back and forth at the same time. To start a chat session, tap the human-silhouette icon in the upper right corner of the app. That will pop open a list of your friends who are available right now to start a chat session, either on their phones (indicated by a phone icon) or on their desktops (indicated by a green dot.) There’s a Favorites list you can edit to list only the friends you message most, so you don’t have to pore through your entire list of available friends to find them every time.


Do you upload lots of photos to Facebook from your smartphone? You have two new options. First, you can now select more than one photo by tapping, to upload them together. You can also configure the app to automatically upload every image you shoot to a private album from which you can later share them with a couple of taps. To turn on this feature, called Photo Sync, go to your timeline and tap your Photos icon.


At the bottom right, look for the Synced button. Tap this, and the app will walk you through configuration of Photo Sync. Once you’ve enabled it, tapping Synced will display those photos that have been auto-uploaded from your phone to your account. You can choose at your leisure which ones to share, and they will be posted to your Facebook timeline instantly, rather than requiring you to wait through the upload process for each one separately as you go.


There are several new features for mobile status updates, too. You can tag friends in a post, just as on the desktop version of Facebook, by putting an @ sign in front of their name — for example, “@Gregory Taylor.” Facebook will turn the mention of your friend’s name in your update to a blue link to their own page and alert your friend to the name-drop.


Status updates from the mobile apps can also be limited as to who sees them — another longtime option on the desktop version of Facebook. While composing a status update, you’ll see an icon at the lower right of the text field. Tap that, and you’ll get a menu of options for who can see the post — Everyone, Friends, Only Me and any friend lists that you or Facebook have created for your account.


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