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New U.S. Intelligence Report Warns of Potential Iranian Nuclear Threat; Apple Recalls Laptop Battery; Flooding in Arizona

Aired August 24, 2006 - 15:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


(BEGIN VIDEOTAPE)
VERONICA DE LA CRUZ, CNN CORRESPONDENT: John Mark Karr waived his right to contest extradition to Colorado. Despite his statement that he was with JonBenet when she died, investigators are still sorting through all the evidence.

You can get the latest news at CNN.com.

Continuing the confusing story, Thai officials claim, Karr admitted having sex with Ramsey before she died, but, added, there was no penetration.

Legal analysts claim DNA tests will be key to the case. This video details why. Throughout the entire process, it has been difficult to learn much about the actual man and why he holds such a close connection to JonBenet Ramsey.

This interactive provides a brief look at Karr, detailing his two marriages, one to a then 13-year-old girl in 1984.

You can find all the latest information at CNN.com/ramseycase.

For the Dotcom desk, I'm Veronica De La Cruz.

(END VIDEOTAPE)

KYRA PHILLIPS, CNN ANCHOR: It's the top of the hour.

We are going to get straight to Carol Lin, working a school shooting in Vermont.

What do we know, Carol?

CAROL LIN, CNN ANCHOR: Just got this, Kyra, so, it is a developing situation in Essex, Vermont.

The Associated Press is reporting that a teacher preparing for the start of classes next week was shot today at an elementary school. CNN can confirm that -- in talking with Essex police, that someone was shot -- can't confirm who it is -- can't confirm their condition.

But police are converging on the scene of this reported shooting of a teacher at an elementary school -- the shooter, according to the Associated Press, still believed to be inside the Essex Elementary School -- no other details available right now. But, Kyra, we are working the situation. This just happened.

PHILLIPS: All right. Appreciate it. We will keep following the details. Thanks, Carol.

We have got new video of Arizona flooding.

Meteorologist Reynolds Wolf is keeping watch from the CNN Weather Center -- Reynolds.

REYNOLDS WOLF, CNN METEOROLOGIST: It has been a busy day in the Desert Southwest.

This is some images that we have, just recently picked up from KTVK in Phoenix, Arizona. And that's a scene that we have seen played out all over the Valley of the Sun, a rainy day across the area, rainfall rates falling at an inch an hour in some places.

And, in Maricopa County, we are currently under a flood watch at this time.

Let's go right to radar very quickly. And we will show you the reason for all these images that you're seeing there -- the scattered showers that continue to drift northward, that monsoonal flow. And, as we tilt back a little bit on our radar, you will notice, here's Maricopa County. We have been seeing, again, just strong storms that have been popping up, heavy rainfall rates, now moving north of the city, right along I-17, the I-17 corridor -- some scattered shower activity a little bit farther to the south in Phoenix.

The problem is, when the ground is already saturated, you don't need any more rain. And, on top of that, they will see a few more scattered showers through the evening, which could compound the problems.

Meantime, we are going to leave the Desert Southwest and take you into to the Northern Plains, where we have not only several severe thunderstorm watches that are in effect from the Great Lakes, back to the Northern Plains. We also have a few tornado warnings that have just popped up over the last couple of minutes.

The latest we have for you, a tornado warning in effect for Burleigh County in south central North Dakota, northwestern Emmons County in south central North Dakota, and southwestern Kidder County.

Also, the latest that we have with this system, we had -- let's see -- a tornado actually near Moffit, about 27 miles southeast of Bismarck, moving east at 20 miles per hour -- also, strong storms north of Minneapolis Saint Paul, some cells right along the I-94 corridor, just to the west of Saint Cloud at this time -- much of this drifting off towards the east, as we make our way a little bit farther back towards the Great Lakes, as we move even more eastward.

We are seeing some scattered clusters also popping up just near the Milwaukee area. You have had one area that has just passed through your neighborhoods in downtown Milwaukee. But, a little bit farther back through the west, through Jefferson and in Madison, we see a very intense cluster of strong storms.

Some of these are rotating at this time. The severe thunderstorm warning that we have in effect, again, back towards Dodgeville, that will remain in effect through 8:00 p.m. At least, the severe thunderstorm warning will be in effect through 2:15 p.m. -- pardon me -- but the thunderstorm watch for this entire area will remain in effect until 8:00 p.m.

Just over the past hour -- and, again, considering we are just a few minutes into the new hour -- we have had 113 lightning strikes. So, these storms contain not only heavy rainfall, damaging winds, hail, but also deadly lightning. And, on top of that, there is the potential for some tornadic activity.

So, this is just the beginning of what could be a very busy, busy afternoon, and a busy evening as well. So, we are going to take a deep breath here, take a look at the situation. And, as we get more information, we are going to send it right on to you.

PHILLIPS: One hundred and thirteen lightning strikes?

WOLF: Yes. And this is powerful stuff. And we're...

PHILLIPS: Wow.

WOLF: ... seeing it. We saw it in the Carolinas this morning. We're seeing it in the Northern Plains. Now it's the turn for the Great Lakes.

PHILLIPS: All right, thanks so much, Reynolds.

WOLF: You bet.

PHILLIPS: CNN I-Report, your chance to share what you have seen.

Let's take a look at some flooding that Jason Parker sent us from Charleston, South Carolina. Jason says that he shot these pictures late this morning from his dorm room at the College of Charleston. Jason says the water is at least a foot or two deep.

Now, if you have got a picture like Jason's, go to CNN.com, send an I-Report, and join the world's most powerful news team.

Iranian leaders may talk uranium, sanctions and deadlines with the U.N. secretary-general himself in just a few days. Kofi Annan plans a stop in Iran, one of 10 destinations on a sweep through the Middle East. His main purpose is to rally support and troops for a U.N. force to keep the peace in Lebanon -- no word whether Annan will be in Tehran before the August 31 deadline for Iran to halt its nuclear activities -- that deadline set by the Security Council.

Diplomacy or delay? Iran's response to the U.N.'s deadline for halting its nuclear enrichment program raises questions. Does a new U.S. intelligence report hold answers?

CNN's Brian Todd investigates. (BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice over): From key intelligence leaders in Congress, new warnings on Iran -- while the regime weighs incentive packages and a deadline for suspending nuclear enrichment, they say, Tehran is also playing a familiar and dangerous game.

REP. MIKE ROGERS (R-MI), HOUSE PERMANENT SELECT COMMITTEE ON INTELLIGENCE: It's beyond a shadow of doubt for me that they are trying to stall for more time to continue their uranium enrichment and the building of their nuclear program.

TODD: Congressman Mike Rogers says, Western leaders have been duped by Iranian diplomacy for the past three years. Rogers is a key player in House Intelligence Committee's new report on Iran's strategic threat to the U.S. and its allies.

ROGERS: These folks are absolutely up to no good. They're developing ballistic missiles. They're developing and trying to enrich uranium. They have chemical and biological weapons programs.

TODD: Information that's not new, but does raise new questions about Iran's intentions at this crucial moment in diplomacy.

For instance, the report says, the regime has produced enough of a compound called uranium hexafluoride to produce 12 nuclear bombs, if it's enriched to weapons-grade. Still, U.S. intelligence leaders and outside experts have repeatedly said Iran likely won't be able to produce a nuclear weapon for at least four years -- ready now, a delivery system for any nuclear weapon, what the report calls the largest inventory of ballistic missiles in the Middle East, a capability that experts say is rapidly being developed further.

JOHN PIKE, GLOBALSECURITY. ORG: The Shahab-3, which is currently operational, has a range of 2,000 kilometers, can get to Israel. The Shahab-4, twice the range, 4,000 kilometers, can get to much of Western Europe. The Shahab-5, also under development, could get all of the way to the United States, but they're years away from having that capability.

TODD: Between four and 10 years for those two longer-range missiles, according to John Pike of GlobalSecurity.org.

(on camera): After repeated calls and e-mails, a top Iranian official at the United Nations told us he needed more time to study the House Intelligence Committee report, but he refuted the accusation that Iran is stalling for time on the nuclear issue, and he said his government is ready to begin negotiations at any time.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: Well, you can see more of Brian Todd's reports on "THE SITUATION ROOM," this afternoon, 4:00 Eastern, and the live prime-time edition at 7:00.

Day 10 and counting for two kidnapped journalists -- New Zealand today joined the U.S. in refusing to negotiate with the group that claims to be holding FOX News reporter Steve Centanni, an American, and his New Zealand photographer, Olaf Wiig. The group is demanding the release of Muslim prisoners in U.S. jails by Saturday.

Now, yesterday, it released this video, which prompted this response from Wiig's wife.

(BEGIN VIDEO CLIP)

ANITA MCNAUGHT, WIFE OF OLAF WIIG: It was a source of great relief and comfort to me and Olaf's and Steve's family and friends to see that our men are being well looked after by you, the kidnappers. And we trust that you will continue to care for them until their release.

(END VIDEO CLIP)

PHILLIPS: Well, journalists held hostage, governments held to their principles, no negotiating with kidnappers -- today, more pleas for the release of American reporter Steve Centanni and his New Zealand photographer from their families.

They will soon get support from another group, too, one led by Jesse Jackson, who has helped win the freedom of political prisoners in the past.

And, just a short time ago, he filled us in on his plans.

(BEGIN VIDEOTAPE)

REVEREND JESSE JACKSON, FOUNDER, RAINBOW/PUSH COALITION: ... ours is a humanitarian mission. And we're going as guests of the Middle Eastern Council of Churches. As we go to Syria, and Lebanon and Israel, we reach out to whoever we suspect may have these two journalists held captive. And the same is true with the three Israeli soldiers who are held captive as well.

I know that, if we do not talk, we cannot effect the change that we seek. And, so, we are very open-minded. We will reach out to whoever we think perhaps has some impact upon the outcome.

PHILLIPS: So, do you think you might be able to meet with this Islamic organization, actually meet with these kidnappers?

JACKSON: I do not know.

And I'm not sure you just dismiss all of them as kidnappers. We do not know who have them. We don't know whether they're dead or alive. Our interest is in their status, A. Our interest is in who has them, two. And, B, can we persuade them to not hold them any longer as trophies, and, for God's sakes, do not kill them.

PHILLIPS: Are you getting support from Palestinian leadership? JACKSON: Well, we're certainly communicating with them.

Once we decided to go and accept the invitation of the Middle East Council, we -- we have talked with the government officials of Syria. We're going to meet with Assad, Mr. Assad, next week, the officials in Lebanon, and the officials in Israel, and our government as well.

While we do not direct it through the governments, at least they are apprised of our attempt to try to expand the cease-fire, try to grant some relief for those who are suffering from the bombing and the counter-bombing. And we make a straight-out moral appeal, please let the captives go. Don't use these men as trophies. Their freedom could, in fact, trigger more positive and good news, so all can be winners in this process.

(END VIDEOTAPE)

PHILLIPS: Well, Jackson and his aides plan to leave tomorrow for Syria, Lebanon, and Israel.

A recall on computer batteries to tell you about -- more LIVE FROM straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: Let's get straight to the newsroom -- Carol Lin working more details on that school shooting in Vermont -- Carol.

LIN: That's right, Kyra.

This is what we know, that someone was shot. This is what Essex Vermont police are confirming to CNN. They cannot confirm the source's condition. The Associated Press reports that it is a teacher who was shot. School is not in session right now. The teacher was there to prepare for school, which is -- is going to be in session next week.

Now, WCAX, a Burlington, Vermont, affiliate, says that there are two suspects still at the scene. That affiliate headed that way -- no ETA right now. This is in a remote part of Vermont. But we are trying to figure out, if it was a teacher, what was the circumstance. And, apparently, these suspects are still on the loose -- Kyra.

PHILLIPS: All right, we will follow it. Thanks, Carol.

LIN: Yes.

PHILLIPS: Let's get to Reynolds Wolf now. He's got more on those tornado warnings he was telling us about -- Reynolds.

WOLF: Yes. We have got a full plate for you in the Northern Plains, back over to the Great Lakes.

What we have at this time -- let's set the stage for you by showing you all the watches and warnings that we have at this time -- the Northern Plains, back over to the Great Lakes. Now, everything you see that is outlined in yellow, these are watches, severe thunderstorm watches, posted by the Storm Prediction Center out of Norman, Oklahoma.

These are places where severe weather is likely to develop through the afternoon, and into the evening. Now, when we get to warnings, oh, this is what we have for you at this time. Right now near Bismarck, North Dakota, we have a tornado warning right here in this area, which will expire at 2:00 p.m., Central time, for Burleigh County.

As we make our way back over towards Steele, places like Linton, even up in Washburn, these all under -- under the chance of that tornado warning. And, then, we have, of course, some severe thunderstorms there embedded with this at this time.

Classic severe thunderstorms that we have right along the I-94 corridor, back over to Bismarck -- if you had some of the rainfall in the Bismarck from the first installment of these strong storms, farther back to the west, you have got the second ram that is going to come through, so you are not out of the woods just yet.

Let's move a little bit more to the east. And, as we do so, we are going to take you back to the Minneapolis Saint Paul area. You have already had plenty of rain. But, farther to the north, we see another area developing back over towards Andover, near Blaine. We have, at this time, a severe thunderstorm warning that is in effect for this area.

Again, some of these storms are rotating. This severe thunderstorm warning will expire at 2:45 for Anoka County. That is just the north of Minneapolis.

We are going to go back a little bit more to the east, and take you back towards places like, say -- well, north of Chicago, over into Milwaukee. Again, you have had some rainfall here. But the big, heavy stuff that's coming down near Sun Prairie, into Madison -- we have a severe thunderstorm warning that is in effect over near Dodgeville, a classic illustration of a severe thunderstorm that is over in the Dodgeville area. That is over in Iowa -- actually, Iowa County.

That expires at -- let's see -- I'm sorry, Lafayette County -- expires at 2:45, Central Time. They have had incredible amounts of lightning, heavy rain, and, of course, hail associated with this, as this trucks from west towards the east.

Meanwhile, as we make our way back to the Sunshine State of Florida, we still have that occurring as well. Take a look at this. This is a classic setup of sea breeze thunderstorms. You have the breeze coming in from the Atlantic, right along the I-95 Corridor. You have the daytime heating, where it's almost like putting a big pot of water on the eye of a stove, and it heats up, it convects, and forms these strong -- strong thunderstorms.

From Orlando, southward into, I would say, very, very close to, say, Fort Lauderdale, we are going to see, again, this occur over the next couple days, possibly affecting the potential shuttle launch, as we get into Sunday.

Over the past hour, we have had over 7,000 lightning strikes detected in the Sunshine State of Florida. And you can expect more throughout the afternoon and into evening hours.

Got a lot to talk about today, weather wise. We will have more coming up in just a few moments. Let's send it back to you at the news desk.

PHILLIPS: Appreciate it, Reynolds.

Well, you know...

WOLF: You bet.

PHILLIPS: ... we have been talking about those two FOX journalists that have been -- have -- been taken hostage in -- while covering the story in the Middle East.

Video, as you have seen here, of abducted Steve Centanni and his photographer, Olaf Wiig.

We're told that we just got recent sound with Steve's brother, Jim Centanni.

We want to take a listen to that.

(BEGIN VIDEO CLIP)

JIM CENTANNI, BROTHER OF FOX NEWS REPORTER STEVE CENTANNI: To the men who are holding my brother Steve Centanni and Olaf Wiig, you reached out to us. Now allow me the opportunity to reach out with my words.

I was able to see our brother Steve and his colleague, Olaf, in the video you released yesterday. It shows you treated them with honor. And I thank you. I heard them say you were treating them with respect.

By now, you know they cherish life. They have no power. They are not deal-makers. They are not politicians. And they have no authority. Our brother and his colleague are in Gaza to report your story, nothing more and nothing less. It is in your control to resolve this matter. I respectfully request that you let our brother Steve and his colleague come home to their families.

(END VIDEO CLIP)

PHILLIPS: Now we have heard from the wife of Olaf Wiig, the photographer -- now hearing from Jim Centanni, the brother of Steve Centanni.

As you know, we have seen this videotape of the two when they were whisked away by gunmen in Gaza City back on August 14. We have also reported that Jesse Jackson headed over to the Middle East to try and negotiate the release of those two hostages.

We will continue to follow all family reaction and the story as it continues.

Well, at least three more car bombings in Baghdad today -- four Iraqis killed, 18 wounded. Outside the city, another car bomb killed three Iraqi soldiers. Two U.S. soldiers were killed today in separate attacks around Baghdad, in a roadside bomb, the other when his patrol came under fire. In hopes of easing the tensions, Iraqis released 50 more detainees today. Some had spent almost two years in prison, without ever being charged.

Well, all 12 of the airline passengers arrested yesterday in Amsterdam are going free. Dutch prosecutors say that there's no evidence of a terrorist plot and no explosives were found on the plane. The men, all Indian nationals, supposedly refused to follow flight crew instructions. They also passed cell phones and other equipment to one another shortly after their Northwest Airlines flight took off from Mumbai, India. The plane was escorted back to Amsterdam by two Dutch F-16s.

Well, three-and-a-half weeks later, and hundreds of miles away, a second suspect in a failed attempt to bomb German trains is in custody. Nineteen-year-old Jihad Hamad turned himself in to police this morning in Tripoli, Lebanon. A prosecutor in Germany says the DNA found in Hamad's apartment there matches DNA on one of the bombs.

Well, another suspect was arrested in Germany over the weekend. Suitcases containing gas canisters, alarm clocks, wires, batteries, and flammable liquid were found on trains in Dortmund and Koblenz, Germany, July 31. And what happens next is not totally clear. Germany has no extradition treaty with Lebanon.

He's not yet charged with killing JonBenet Ramsey, but John Karr's family is going Hollywood -- all the new details of the day next on LIVE FROM.

(COMMERCIAL BREAK)

PHILLIPS: Well, Apple is recalling nearly two million laptop batteries because of a risk of overheating.

For more on that story, let's go to Susan Lisovicz, live from the New York Stock Exchange.

Hey, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hey, Kyra.

The concern with the laptop batteries in question is that they can overheat, and possibly cause a fire, which is what happened in several cases with Dell computers. Now the Consumer Product Safety Commission is announcing a recall of 1.1 million batteries for Apple laptops, as well as another 700,000 outside the U.S.

The recall applies to 12-inch iBook G4s, 12-inch PowerBook G4s, and 12-inch PowerBook G4 models. Computers sold between October of 2003 and this month could be affected. You can call 800-275-2273 for more information.

If you think you might have one of the recalled laptops, Apple says, you should remove the battery, and check the serial numbers against the ones listed here. They are also listed on the -- Apple.com or at www.cpsc.gov. These are the same type of Sony lithium-ion batteries involved in last week's Dell recall.

When that happened, Apple said it was looking at its batteries. And the company has now decided that they do pose a risk of overheating -- Kyra.

PHILLIPS: Now, we keep checking in on Apple's stock. Any difference from when we last talked?

LISOVICZ: No. It's holding steady, up about a half-a-percent higher, Kyra.

But shares of Sony, which makes the batteries, and bears financial responsibility, are dropping 3 percent. Sony said the recall could cost the company more than $250 million. It also says it does not anticipate any further recalls. Apple has come out with a statement, says it expects no material results to the bottom line, which is basically what Dell said a week ago. And that may be why the stock is really not getting hit.

And, overall, well, stocks not doing a whole heck of a lot of anything in the final 40 minutes of trading -- the Dow right now down 10 points. The NASDAQ composite is down two points. We have just cracked a billion shares traded here, which means it's a really slow day, and really a big day, probably, for vacations.

That's the latest from Wall Street. I will be back in about half-an-hour with a roundup of the trading day.

Stay with us. LIVE FROM will be right back.

(COMMERCIAL BREAK)

PHILLIPS: Let's get straight to the newsroom -- Carol Lin with more details on that school shooting in Vermont.

LIN: That's right.

CNN has just spoken with the state police there, near Essex, Vermont. They are saying that two people have been shot at this elementary school.

This is what we know, outside of that. There was a shooting that went down there -- only teachers, apparently, present at that elementary school, according to the local CBS affiliate there -- also, that same affiliate saying that it's believed two suspects may still be at the scene -- the Associated Press reporting that -- initially, that it was a teacher that was shot. School is not in session. Teachers were present at that elementary school, getting ready for the school year to begin next week.

So, we have got affiliates heading that way. We don't know what time they're going to arrive. But this story is developing right now, Kyra. We are going to try to find out if it was indeed a teacher, if in fact two people shot there, but, seriously -- something very serious going down at that elementary school in Essex, Vermont -- a very rural part of the state.

PHILLIPS: All right, we will keep following it.

Carol, thanks. Let me know when you have something new.

Meanwhile, I know things get really serious in the Weather Center when Reynolds takes off his jacket...

(LAUGHTER)

PHILLIPS: ... and rolls up his sleeves.

(WEATHER REPORT)

PHILLIPS: Well day 10 and counting for two kidnapped journalists. New Zealand today joined the U.S. in refusing to negotiate with a group that claims to be holding Fox News reporter Steve Centanni, an American, and his New Zealand photographer, Olaf Wiig. The group is demanding that the release of Muslim prisoners in U.S. jails happens by Saturday. Within this hour, Centanni's brother released this plea.

(BEGIN VIDEO CLIP)

KEN CENTANNI, STEVE CENTANNI'S BROTHER: To the men who are holding my brother, Steve Centanni and Olaf Wiig, you reached out to us. Now allow me the opportunity to reach out with my words. I was able to see our brother, Steve, and his colleague Olaf in the video you released yesterday. It shows you have treated them with honor, and I thank you. I heard them say you were treating them with respect. By now you know they cherish life.

They have no power. They are not deal-makers. They are not politicians and they have no authority. Our brother and his colleague are in Gaza to report your story, nothing more, and nothing less. It is in your control to resolve this matter. I respectfully request that you let our brother, Steve, and his colleague, come home to their families.

(END VIDEO CLIP)

PHILLIPS: Once again, that's Steve Centanni's brother, Ken.

Well we are LIVE FROM Boulder, Colorado and we'll have the latest on John Karr coming up next. News keeps coming, we'll keep bringing it to you. More LIVE FROM. (COMMERCIAL BREAK)

PHILLIPS: Some of these pictures we are getting in from our affiliate out of Phoenix, KPNX. This is the flooding that is going on in Phoenix, Arizona right now. As you know, sorry? OK, these are live pictures now that we are getting in from Phoenix, Arizona. As you know, Reynolds Wolf has been talking to us about them. We will get Reynolds linked up here. I see over there Reynolds. He's going to get linked up. He's following. You with us? You with us Reynolds?

WOLF: Well let me see. I just put on my eye peace, so I think you have the advantage on me. I think we are talking about the Arizona flooding.

PHILLIPS: You got it. We had a live picture. We just lost it right now. We are a trying to get it back up.

WOLF: Let's talk about it, you want to talk about it?

PHILLIPS: Yes because the flooding is intense. Here we go. Here's that picture once again, Reynolds, if you can see it. It's just coming in to us from KPNX. You've been talking about the severe flooding, the thunderstorms, more than 4,000 lightning strikes in a certain area, how is this all going to play out? Is it going to keep getting worse?

WOLF: Well here's the problem, if you look at that shot. If you look at that live image, you can see a little bit of a shadow with those guys, that tells you that the sun is already out. So the situation is actually improving a little bit there, but the problem is, there goes the shot, even though things are beginning to improve there, as far as the showers moving farther to the north, we still have all that rain on the ground and all that moisture.

All that moisture has to go some place, so gravity pulls into the low-lying areas and you have all that, as I mentioned, the runoff and the runoff causes flooding. So what you are seeing now are kind of the repercussions from all the heavy rain we had earlier in the day, some of it up to a rate of an inch an hour, and now all of that is just zooming in to the lower spots around the valley of the sun, in to downtown Phoenix. And with that we're having all of these issues that we have been seeing.

Take a look at one side of the screen you see the cars, the water stacked up right to the bumper, if not higher in some locations. And I'm telling you, I know it's going to happen, someone is always going to drive-through one of these low-lying areas and someone is going to have to get out there and, of course, rescue some people. It never fails.

PHILLIPS: And stay with me Reynolds as you are tracking the conditions there because as we follow these live pictures from KPNX, you can actually see there are some people trapped, at least in one of those cars there, as you pull out, you can kind of get a feel for where these cars got stuck. WOLF: So dangerous.

PHILLIPS: It is. I am being told that they are getting ready, they are getting in place to move in and try and rescue those drivers. At least I can see a driver in one, it looks like it's pretty, as we monitor this rescue that is about to take place, it looks like it's not getting higher. You were mentioning the low...

WOLF: Low-lying ground

PHILLIPS: Low-lying ground and if the rain stops, then, pretty much, it will probably stay at this level, right?

WOLF: Absolutely, I mean, the thing is it is going to take a little bit of time. It may get a little bit worse before it gets better. But I would say definitely within the next couple of hours it is going to drop.

And notice that pole. You notice the pole where it says three, four feet, five feet, the designation you have around that pole? That is an area where this has happened before, where you have these monsoonal rains and you have that water that begins to stack up like that, so this is not something unheard of. And that's the whole reason why you see right there at the pole the three feel.

See, obviously, it could get up to maybe four feet. I don't think it will get up as high as five but this is an area of runoff, if you will. In situations like this, you have this rain that the water -- the excess water that drifts through areas like this.

So, again, that's certainly a great mark right there that tells you this has happened before and this area is designed for that. However, certainly it's not designed -- there's no design for a car driving through this kind of a situation, certainly a scary, scary thing.

PHILLIPS: Well, you can see the guys that are heading in to try and effect that rescue. And you saw there on the pole it says, "don't enter this area if flooding." So the question is, were these drivers just trying to make it before it got pretty bad? Or did they see or are they not familiar with that area?

WOLF: I know. Absolutely.

PHILLIPS: I find it hard to believe that they would want to work their way through this. It had to be pretty bad when they got there. I mean, it's already at three feet. But nevertheless both cars stuck in that spot and you can see the three guys there on the lower part of that live shot via KPNX moving in to try to get them.

WOLF: But, you know as well as I do, I mean, it's an entirely different world when you have heavy rain and you have all that runoff compared to just a dry, summer's day.

You know, I mean, it changes very quickly and I think people just kind of lose a sense of, I guess -- who knows what they think when they drive through things like that. I think they figure their car can make it on through. They go through, they're stuck, and then they are in a life-threatening situation.

PHILLIPS: And, Reynolds, I don't know if you've ever been in a situation like this. A lot of people might say, hey, why don't they just jump out, you know, swim to something. But what's amazing, is it may not look like it's pretty strong, rushing water, but actually, it is.

I mean, the undercurrent and how quickly that water can suck you right under and take you down river is pretty intense. And so, obviously, these guys have told them to stay put into the cars and, you know, working their way to get up to them. They are obviously able to communicate with them and let them know not to get out.

WOLF: Oh, yes, absolutely. You know, you are all over. You made an excellent point that even though the surface of the water may look like its kind of tranquil at times -- although from our vantage point it looks like its moving pretty quickly -- underneath the surface the current can be much, much stronger. So although, you know, you might be walking along like these fellows, you may hit a bad spot, a bad current, and boom, it will knock you right off your feet.

PHILLIPS: You can see where they're connected to the rope too. Is that -- it looks like -- is it airborne? Is there a helicopter above?

WOLF: Well, from this vantage point it's really difficult to say, but you can tell these guys are definitely ready whether they have assistance on the shore or if they have it from high above. They already have flotation devices.

They've got the helmets on in case there's any kind of debris, they were to fall and hit something, a branch maybe, perhaps a rock that has been pushed down from the strong water or even a -- who knows, a door handle opening up. I mean, you take your pick at what kind of things may be pushed downstream.

PHILLIPS: Yes, usually when they come in for the rescue they have got some sort of attachment via a pulley and straps, but they are pretty confident walking in there -- maybe the stick is to let them know the depth of that water as they are working their way in. I am surprised to see them going in without being attached to anything else, considering the strength of that water.

WOLF: Sure, but then you also have to remember perhaps one reason why they have the stick is because if you happen to have a large manhole or something where the cover has been lifted off, that almost creates like a suction. If you have a manhole where you have the suction with all the floodwaters going down, you happen to be over that, you get sucked in, heavens help you. I mean, it's bad news.

These guys -- one thing we really need to point out to the audience, the three men that you see here, or perhaps women. It's kind of hard to determine from this vantage point. They have had incredible training. They obviously know what they are doing. This is not just, you know, some Joe Schmo from down the block who is going to out there and put on a life preserver and try to help someone, these are professionals. They really, really know what they're doing, and they're going to do the best job they can to get these people out of harm's way.

PHILLIPS: And I'm looking at the wire service, and it says this is the Scottsdale, Arizona area, Reynolds. I don't know if you have got any kind of intel you can get. It says that there's occupants in both of these cars and they have been stranded in this water at rain- swollen Indian Bend Wash in north Scottsdale. I don't know if you can get any radars on the north Scottsdale area.

WOLF: Actually, Kyra, what's interesting is right now on our radar, you can just see here's Phoenix. Although we don't have Scottsdale marked down on the screen at this point, I can tell you it's about -- if Phoenix were just say the center of a clock, I would say Scottsdale would be right around 2:00, perhaps 3:00.

The heaviest rain is moving out so there's not going to be anything added in terms of precipitation to add to these problems so, again, just to give you a vantage point, here's Phoenix, here's Scottsdale, the heaviest rain now beginning to lift out of the area. You have got dry air advecting, moving in from the Southwest, moving to the northeast.

So the sky conditions are going to be improving. That's actually really good news for rescue workers who might be in those choppers high above, so that's great for them. But for the people on the ground the story is the runoff. The story is the rain that they've been getting since 9:00 this morning, rainfall rates about an hour at a time and this is what we are seeing.

PHILLIPS: And if our viewers are just tuning in, you are looking at live pictures. Reynolds and I are keeping a close eye on what's coming out of KPNX, our affiliate there in Phoenix, Arizona. The actually though, is Scottsdale, Arizona.

I am being told that there's occupants in both of these cars that have been stranded in this water from the rain-swollen Indian Bend Wash in north Scottsdale. The cars got stuck there while driving on Indian Bend Road, if you are familiar with that area. This is Indian Bend Road.

We're told that the fire crews have been on the scene for awhile. Firefighters right now are trying to reach those individuals, figure out how to get them out of there. As you can see the water is up to the window levels on both vehicles.

And you can actually see the pole, the warning pole, not far from those cars that actually says when this area floods, stay away. And it's actually got a measuring stick, three feet, four feet, five feet. It was at three feet last time we got to take a look at that. So the cars are probably submerged, three or four feet of water.

And Reynolds and I were talking about it's a good move that they haven't gotten out of those cars considering if they are not good swimmers, if they are not used to being in that type of -- you know, those strong type of water conditions, that current can just grab hold of them and sweep them right under. And we still don't even know if there are children in those cars, Reynolds.

WOLF: No, not at all. And, you know, just to kind of, again, touch on what you said moments ago about the people that we have in this situation, flooding is your number one killer. Flooding is the number one weather killer. And I will tell you, that is a real death trap. Being in a car like that is such a dangerous, dangerous situation.

And, again, it kind of makes you wonder what they were thinking, because you would have to think when they were crossing the roadway there certainly had to be quite a bit of water crossing it beforehand. I seriously doubt this entire thing came down like one giant wash and affected the cars as you see at this time.

I think there must have been water on the roadways, and this compounds the point that you should never ever cross a road when you have any kind of water, at least water that you can't see the surface of the road at all, where it's not visible to you. Don't bother crossing or you may end up in a situation like this. Thankfully, though, we do have the rescue workers here and it seems like -- they sure don't seem to be in a hurry, do they?

PHILLIPS: No, and that's what I was wondering. It sort of looks like the water is rising. It's getting up higher to about the fronts of both of those cars and you can see the water is rising on the three rescue workers as well.

And I don't understand why they would be -- I don't know if we can start trying to work a beeper out of the fire department there in Phoenix, Arizona. OK, we are working that. We are trying to get someone on the line with us from the fire department, maybe someone from search and rescue.

But I did have an opportunity at one point, Reynolds, to train with the LAPD swift water rescue guys, and you know, a lot of times, or a majority of the time they would come in with a helo. They would have guys strapped down and they would just get those people out of either a boat or a car or whatever was in this sort of situation, lock onto them and get them out of there.

So they are obviously trying to strategize what's the best way to go about this. They have got radios. They're on coms possibly communicating with other parties to come in there and help and try to get them out of there.

OK, these pictures coming to us once again from KPNX, one of our affiliates out of Phoenix, Arizona. This is Scottsdale, Arizona, where you can see -- this is Indian Bend Road if you are familiar with this area.

And what we can tell you is that the occupants -- there are occupants in both car is, not sure how many adults, if there are children in these cars, but they have been stranded in this water at least for the past hour or so that we have been following this. The rain-swollen waters are on Indian Bend Wash there in north Scottsdale.

Fire crews on the scene, these firefighters trying to figure out how they are going to reach these people, get them out. You can see that the water levels are rising there on both those cars. We're going to continue to monitor these live pictures and what's happening in Scottsdale.

Carol, are you working this as well, or are you working another developing story for us?

LIN: Working another developing story.

Kyra, we are trying to figure out what's going on in Essex, Vermont. State police out there have told us that there was a shooting at an elementary school. Different sources on what exactly is happening there. The Associated Press reporting that it was a teacher shot.

A local affiliate there saying that there are two suspects and now the Associated Press reporting that there was another shooting at a greenhouse business close by to this Essex elementary school, so we have a good idea there may be two suspects.

Another report has the suspect at the school who may be the shooter, who was apprehended on that campus. There were no students attending. School hasn't started there yet, but about 30 teachers on that campus right now.

And, Kyra, more details also from the local press -- the "Burlington Free Press" there, who was monitoring the police scanners as this was going down about 2:00 in the afternoon Eastern time. According to the police scanners, it says, made contact with the bad guy, he's inside the school.

The scanner also reported that a second suspect had fled the scene. Police surrounded the school and a tactical unit was said to be negotiating with a suspect inside. Also police on the scanner talking about a person being shot in the back and that a police cruiser was used to transport, this Web site saying, an injured teacher from the school to a waiting ambulance.

Once again about 30 employees inside that school at the time of the shooting. A neighbor told the Burlington Free Press that there are cops all over the front of the building and as you can see in inset box on the left side of your screen, these are the first pictures that we are actually seeing of where this shooting actually went down. So Kyra, this is what we know right now.

It's possible that there may be a shooting spree going on, a person, possibly two people, shot inside a school and another shooting at a local greenhouse business. This is in Essex, Vermont, a rural part of that state and this is the story that we're working right now for you. PHILLIPS: Stay with me Carol as I just bring our viewers up to date on the two things that we are monitoring. Carol has been talking about this school shooting in Essex, Vermont and then on the other side of your screen, you are seeing live pictures from KPNX, our affiliate out of Phoenix, Arizona, two cars submerged there in the rain swollen waters of this area in North Scottsdale, Arizona. You can see the three firefighters trying to figure out how they are going to get those individuals out of those two vehicle.

Carol, back to this shooting, this teacher shot at this Vermont school, I was looking at some of the wires. Tell me if you are seeing the same thing, did you mention anything about police searching for any certain cars or suspects being described in this case? I just saw something come across the wire about they are looking for two cars?

LIN: This is according to, the Associated Press is tracking one of the local affiliates up there, WCAX and that television station has said that police are looking for two cars, for a suspect, described as a black man in his early 30s, about six foot three inches tall, with shoulder length corn rows.

He was reported to be armed with a large caliber handgun and police are calling him armed and dangerous. But Kyra, also, this report makes a note saying that there are conflicting reports from the scene, that the Associated Press photographer also on the scene said a short time later that a man had been captured after a foot chase.

So we have a shooting at that school, possibly two suspects, we have negotiations going on, but we also a report here saying that a man was actually captured after the foot chase and another shooting nearby the school. So these are the bits and pieces that we are getting in, and let me see, Jenny Cook (ph) is one of our executive producers, handing me something here.

OK, this is an update here from one of our folks up in New York. It says here, according to Fletcher Allen Health Care Center, a PR representative there, two people being treated at Fletcher Allen Health Care Center in Burlington, Vermont. We don't have any other details on the severity of the injuries.

We are going to be hearing shortly, hopefully, from the manager who will be calling CNN with more details and we have asked for an interview with someone from that health care facility to find out whether in fact they were teachers who were shot, how serious the injuries, and whether these two people who were brought in can offer an eyewitness accounts as to who the suspects may be.

PHILLIPS: Got it Carol. All right Carol Lin following on one side of the screen, you will see a developing story about this teacher shot at a Vermont school. We'll follow that. We are also follow this breaking story out of the Scottsdale, Arizona area.

Our affiliate KPNX bringing us live pictures. What we can tell you is that a lot of isolated rains have caused street flooding in parts of the Phoenix metro area, filling a wash with just a rushing torrent of water that has trapped at least two cars right here in the Scottsdale area, North Scottsdale area.

Firefighters have been wading in this water. It's the Indian Bend Wash Street. They are trying to free the motorists that are in these cars. You can actually see the wash, it's rising from when we last took this live picture. They are bringing in three more rescue workers here or firefighters to try and, it will be interesting to see how they work the instruments here and how they plan on pulling out these individuals in these cars. Bringing in life vests.

It's obviously a very thoughtful process, how to do this safely when the water is rushing in such a strong manner. Don't know how many people are in those cars, but you can see them putting in life vests. Whomever is in those cars will get ready. It will be interesting to see if they come out the top, out the side doors and how these rescue workers are going to get them out.

Now, that wash, I'm told, which runs through Scottsdale, normally floods during times of heavy rain and is specifically this area, there's even warning signs that are in this area, talking about if, indeed there are heavy rains and it's flooding, don't come through that area. It actually had a measuring stick showing you how high the water was. It looks about four feet from that stick which is a little farther away from these cars, could be a little higher in this area, but three to four feet.

Reynolds Wolf also following the conditions for us here. You know you were talking about these washes are pretty much dry stream beds that run during heavy rains and it's not just this area, but you are also monitoring a tropical storm Reynolds that is brewing as well.

WOLF: Absolutely. We're watching the tropics. We have been watching parts of the desert southwest. We are going to focus on the tropics for just a moment and what we have been seeing here is a tropical wave that has been moving through the Windward Islands.

Now earlier there were reports in Granada of more of a westerly breeze. The reason why that's important is because if you have a west breeze coming in from Granada and then for other parts of the Windward Islands you have more of a breeze that continues to come in from the east, that would indicate a little bit of circulation.

Well there was an aircraft, an Air Force reconnaissance plane that went in to the center of this wave and confirmed that closed circulation. So there is the possibility that, I would say over the next 30 minutes to an hour, this may be named a tropical depression. Now if this ends up becoming a named storm, this will be Ernesto. Ernesto will be the next on the list and that will be the fifth named storm on the season. I am going to pull away for just a moment.

We are going to show you again in the broad view of, again there's the system right there, Leeward Islands, Windward Islands, South America. What could happen is if this storm were to enter the Caribbean, right now it is a low shear environment. Water temperatures that are in to the 80s, so it could be a good hotbed for this storm really to intensify. So we're going to have to watch that for you very carefully. Meantime we do see Debby moving right into the center of the Atlantic. Debby a tropical storm, not expected at all to become a threat to the U.S. mainland. That's the latest we have for you. Let's send it back to you at the news desk.

PHILLIPS: All right stay with me there Reynolds. Thanks so much. You are watching the conditions as you are watching a live rescue unfold in Scottsdale, Arizona. It started out with three rescue workers. Now you've got six and there are two cars here in the North Scottsdale area that got submerged, well almost submerged, it's about four feet deep right now. It looks like they have got the driver out of the first car there and they are working now on the individual that's in the car that's in the front.

They've been communicating with the drivers. They got helmets on both of them, life vests on both of them. But it's pretty amazing to watch how this go down. Obviously they have got the sticks, as Reynolds was saying, to look for any potholes, anything that could cause them to trip, fall under, sink in any way as they come through these waters, waters that are rushing pretty fast.

You can even see the power of it. I mean look at how many men it's taking just to safely get this driver through the flooded waters. You are seeing the other driver of the other car is now out. The other rescue workers circling around him. Looks like there was only one driver in each car, no passengers, no children, and so far so good with regard to effecting these rescues.

Now this area right now of North Scottsdale, I am told is the Indian Bend Road, a pretty common area to flood when heavy rains come through here. Fire crews have been on the scene trying to figure out what's the safest way to get in there and get these drivers out of an area that they probably should not have ventured into, seeing that the water was rising pretty quickly and it was a risk just to come through that area, an area known to flood like this. But even in areas where they are walking through, you can see the water is deeper, higher in some areas from where those cars were.

That gives you a bigger perspective from the helicopter via our affiliate KPNX, as the waters continue that momentum, rushing through that area, it creates a pretty strong current. Three rescue workers on each one of those drivers, safely trying to bring them out.

Reynolds Wolf has been watching all the weather conditions in this area and across the region, we've been getting a lot of storms, lightening strikes throughout the day we've been reporting. Now Reynolds the good news is it stopped raining in this area, that would have just created a tougher situation for those rescue workers trying to get those guys out of there quickly.

WOLF: Well thankfully though, things will not get bad, I think things, they are at their worse at this point. We've got the run-off. Most of the shower activity is now moving well to the north, so now it's improvement time for places like Scottsdale but it is amazing, again, to see just how many people are helping those folks that were stranded in those cars. I mean they are not going to, they are certainly going to take every single precaution they can to get those people out safely. That water can be a deadly thing. Back to you.

PHILLIPS: Reynolds thanks so much. We're going to continue this water rescue taking place right now in Scottsdale, Arizona. Our Wolf Blitzer stepping in to start "THE SITUATION ROOM." Wolf, you've already got an active, moving story to take you through the next couple of hours.

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