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U.S. Airstrike Video at Issue; Firms Challenge Deep Drilling Ban; BP: We've Spent $2 Billion to Clean; Van Der Sloot: I Was Tricked; Getting Out of Afghanistan; As Oil Gushes, So Does Support

Aired June 21, 2010 - 09:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: And hello, everyone. I'm Kyra Phillips live from New Orleans. It's a busy day of news today.

In just a little more than an hour, oil companies are set to ask for an end to the moratorium on deepwater drilling.

And another U.S. town is hit hard by a monster tornado. We're going to have more on this storm caught in the act.

The exit deadline for soldiers in Iraq is 2011, but we're hearing something different from top military commanders.

We're here in New Orleans on the first day of summer. Today I'll be talking with people who live here, work here, talking about how their lives have changed so radically in the 63 days since the oil Gulf disaster began. I'll also tell you how you can help make a difference.

But first, a potential bombshell for the U.S. military in Afghanistan. The founder of the secretive Web site Wikileaks claims to have combat video of an air strike that killed as many as 140 people.

The Pentagon says the victims were Taliban militants. Wikileaks says that most were children and teenagers. But now the Pentagon wants to talk to the site's founder, Julian Assange.

CNN's Atika Shubert is in London.

Atika, lay this out for us. There was an army intelligence officer arrested in connection with this, correct?

ATIKA SHUBERT, CNN CORRESPONDENT: That's right. Bradley Manning who was arrested just a few weeks ago. Allegedly, he was the source of this video. I say allegedly because Wikileaks has not confirmed that. They say that he's only an alleged source. And so trying to trace where this video comes from is a mystery in itself.

Where Julian Assange is always a mystery. Wikileaks, as you know, is sort of an elusive group. The site operates -- it's out of Sweden, but the members themselves always seem to change their sites. And Julian Assange who's Australian doesn't seem to have a permanent home anywhere. He just sort of pops up around the world. And at the moment, it seems, he is due to show up at a conference in Brussels today. We'll have to see if he shows. The last time he was due to show up at a news conference in Las Vegas he was a no-show.

Wikileaks believes that it under attack, in a sense, from the Pentagon and it says it fears repercussions, but that it is preparing to release this video soon.

PHILLIPS: Now, Atika, this guy, Julian Assange, it's the same person who released controversial video out of Iraq back in April, right?

SHUBERT: That's right. Wikileaks is known for having these incredible kind of scoops. It's basically the site allows for anonymous whistleblowers to give them information. They then vet the information and put it out.

One of the scoops was this video -- combat video out of Iraq that showed a strike on what Wikileaks says were civilians in Iraq. Caused quite a story at that time earlier this year. Now Wikileaks says it has this even more controversial video in Afghanistan.

Nobody has seen it yet. We don't know where it comes from or when it will be released, but Wikileaks says it will be big.

PHILLIPS: We'll follow the story. Atika Shubert, thanks so much.

Now let's get you caught up on what's happening here on day 63 of the oil Gulf disaster. BP says it's spent about $2 billion so far. That's for the spill response, drilling two relief wells, paying claims and so on.

The man overseeing BP's $20 billion compensation fund tells CNN that the company needs to speed up that payment process.

Now the government thinks up to 2.5 million gallons of crude are now gushing into the Gulf every day. New Orleans Mayor Mitch Landrieu told CNN earlier this morning no one knows yet just how catastrophic this event is.

And later this morning here in the city several companies ask a federal judge to end the six-month ban on deepwater drilling. The plaintiffs say that there's no proof that the rigs already out there pose a threat.

It's a tough spot and a double-edged sword, if you live and work down here, you don't want another Deepwater Horizon scenario, that's for sure. But you don't want to kill off a major economic region especially in this economy.

We'll talk more about that with CNN's Chris Lawrence. I would say just on time.

CHRIS LAWRENCE, CNN CORRESPONDENT: On cue.

(CROSSTALK)

PHILLIPS: On cue. Every time we've got a live guest or a reporter, Chris -- but that's New Orleans for you, right?

LAWRENCE: I know. Yes.

PHILLIPS: But there's other things to worry about and that's exactly what we're talking about with regard to this moratorium. Already affecting so many people here in this region.

LAWRENCE: The moratorium is such a huge deal, Kyra, and also to this idea of this claims process that a lot of people here have been struggling with. I think you mentioned, you know, BP has paid out over $100 million and cut more than 30,000 checks.

But that still leaves thousands of people out there who are either waiting to get paid or wondering how BP is coming wit the figures that they're offering them on their claims.

PHILLIPS: All right. I thought we were going to a piece there. So sorry about that, Chris.

OK, the claims process, a huge issue here. And I remember being here a couple of weeks ago and Admiral Thad Allen, you know, I had a chance to spend some time with him. And he was on the phone constantly asking about those BP representatives. Are they in place? Are they in certain region? Is the paperwork getting filled out?

I mean this is still a huge priority for the effort here with regard to the response, trying to get those cut -- those checks cut, but as you and I well know, Exxon Valdez -- I mean it took decades for some of those people to finally see money. Many of them, as we've reported, actually passing away and never seeing a dime.

So there's a huge concern about getting money into the hands of individuals that need it right now.

LAWRENCE: I was talking to a fisherman who basically -- he laid out everything. 2007, 2008, 2009 tax returns, all his canceled checks. He laid out his -- opened up his calendar, showed me line by line all the people he had booked from May all the way to the end of the year.

He totaled it up, he subtracted for any fuel costs, things he wouldn't use if they cancel. If he wasn't actually taking the boat out. Came up with a dollar figure to the penny, $107,000. BP offers him $33,000. He can't figure out where this is going.

You know I asked him now that Ken Feinberg is in charge, you know, do you have more confidence in the government running this claims process, and he said, yes, I'm cautiously optimistic. I'm still a little suspicious because the last time I dealt with the hurricane it was after Hurricane Katrina. I waited 2 1/2 years to get a small business loan.

PHILLIPS: Point well made. There are still people here suffering from Katrina and now they're having to deal with this disaster.

Got to mention over the weekend, I saw it cross the wires. And I remember my reaction was, uh-oh, here we go again. Tony Hayward. OK? The man that has been labeled the most intensive CEO probably in the world saying he wants his life back.

Now he shows up at a yacht race in England. And a lot of criticism, of course, surfacing saying what is he doing taking off to a yacht race to what his yacht compete when he should be here dealing with this situation on a daily basis?

LAWRENCE: I talked to -- I talked to one person who said, he did what? She literally could not believe it. You know, she said our boats are here in the water scooping up oil and dead birds or they are dry docked and out of business, and here's this 50-foot yacht sailing around the southern coast of England.

At the same time, I talked to other people who said, well, President Obama went golfing this weekend. You know what -- aren't they pretty much the same?

And still a third person even said, look, this guy can't work 24 hours a day. Nobody can work 24 hours a day. The guy's family doesn't live here in the United States. He has to see his family at some point. And they feel like at some point all this piling on is getting to be a bit much.

PHILLIPS: And BP also came forward and said, look, you're right. Everybody needs a break. He's got to be able to step away, decompress, spend time with the family. It's just hard, like you pointed out, if you live in this area and you are suffering minute by minute. And you're --

LAWRENCE: I don't get a break so --

PHILLIPS: Why should he get it?

LAWRENCE: Yes. Nobody should, yes.

PHILLIPS: Well, we'll follow it, of course. Sounds like he needs some a little more PR help, Chris.

(LAUGHTER)

LAWRENCE: They're going to seeing this PR campaign as what not to do for years to come. Yes.

PHILLIPS: Yes. Exactly. Chris Lawrence, appreciate your time. Thanks so much.

And here's an interesting tidbit that we learned this morning. A man who worked on the Deepwater Horizon and lived to tell about it tells the BBC that he found a leak in a key part of the blowout preventer weeks before the rig blew up.

He says his boss gave BP and the rig owner, Transocean, the head's up, and that the leaky equipment was shut down. But he doesn't know if it were turned back on before the explosion.

BP says that Transocean was responsible for the device.

Today is a day that you can be part of this story. A good part. Join us tonight for an all-star telethon to help the people that are here on the Gulf Coast. A special two-hour "LARRY KING LIVE" event begins at 8:00 Eastern right here on CNN.

Everyone from Sting to Erin Neville to Robert Redford, Ted Danson and Lenny Kravitz. They're all taking part tonight, 8:00 Eastern, right here on CNN.

And another U.S. town hit hard by a monster tornado. We'll have more on this storm caught up in the act.

(COMMERCIAL BREAK)

PHILLIPS: Well, here's a severe weather story that really moved all of us this morning. It's about a Minnesota man who loved his daughter so much that he gave his life for her. Wes Michaels' ultimate sacrifice came last week when a tornado hit his convenient store in Mentor, Minnesota.

Wes' daughter Heidi was working in the store so Wes could celebrate his 58th birthday. But bad weather was on the way and Wes went to check on his daughter. He got there just before the twister hit.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I called out for him to save me, and he had already saved me because everything was -- he took the brunt of the force. And I survived because of him. And I'm so, so very grateful for that.

(END OF VIDEO CLIP)

PHILLIPS: Heidi says that part of her dad's body was on top of hers protecting her from the collapsed store. She got out with just cuts and bruises.

Another tornado has done a lot of damage in Billings, Montana. Reynolds Wolf, back in the weather center there with that story.

Boy, Reynolds, that -- that story about Wes and Heidi is heart- wrenching.

REYNOLDS WOLF, CNN METEOROLOGIST: It is heart-wrenching. And it's a scene that we always hate to see, but there's a chance we may see more of those storms develop today, possibly some tornados.

We had a strong storm yesterday that dropped a tornado in parts of Montana. Let's go to that right now, and we are going to show you this video from Billings, which this particular storm only lasted about 20 minutes or so, but not before doing all kinds of damage to the community; several buildings destroyed. There was some roof damage at a sports athletic complex.

But again, thankfully, no substantial injuries, no fatalities. But, always be on guard this time of the year.

In fact, as we take a look at our national map. Take a look at this. You can see some storms developing across parts of the central plains, moving into the western half of the great lakes.

Chicago, a place that was ravaged by strong wind gusts. In fact, over the weekend, over a quarter of a million people without power. It looks like you may see round two of some strong storms moving through the area.

Nothing severe as of yet, but into the afternoon hour, I want you to know notice something. You are going to see this big area shaded in red, where we might see some strong thunderstorms; and there is the possibility, a slight one, but still the chance, we might have a few tornadoes pop up across the area, too. So just be on guard for that.

Something else that we really have to consider today is not just the chance of strong storms, but intense heat, and plenty of it, especially in places along parts of the Gulf coast, where highs are going to rise mainly into the triple digits and some 90's.

You factor in the high humidity, and it is going to feel much stronger than that, and much hotter than that. We are not just talking along parts of the Gulf coast.

We are also going to see that in portions of the central plains and along the mid-Mississippi Valley, for St. Louis back to Memphis, even into Wichita, Oklahoma City, you have your heat warnings, your advisories and your watches, where it is going to feel anywhere from 100 to possibly 115 degrees.

Summer here just officially began just a few hours ago, and we are certainly going to feel it today. Kyra, back to you.

PHILLIPS: Reynolds, thanks.

REYNOLDS: You bet.

PHILLIPS: A near tragedy in Chicago's underground. Subway riders rush to evacuate after a fire breaks out. We will bring you more.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories, it is day 63 of the oil disaster in the Gulf. The fallout from the President's offshore drilling moratorium heads into Federal Court.

At 10:30 Eastern a judge will begin hearing arguments from a coalition of oil service companies. They want the six-month ban lifted. They say the ban will cost them jobs and a lot of money.

Israel is stepping back a bit on Gaza. It is expanding land crossing and streamlining the permitting process for aid groups delivering supplies to Gaza. But it is keeping the sea blockade, saying it will continue to inspect goods on ships headed to Gaza. Palestinian government says it doesn't go far enough.

Investigators are trying to learn what caused a fire in Chicago's subway system yesterday. At least a dozen people were hospitalized in serious condition with smoke inhalation. It is believed sparks from the train ignited railroad ties inside a tunnel near the city's Clark Street Station.

Tar balls on the beach. We have been talking a lot about that. Ocean waters clear as mud, and seafood sidelined. Would you book a ticket for a Gulf Coast getaway? We are talking tourism now and the push to get you to come here this summer.

(COMMERCIAL BREAK)

PHILLIPS: The oil catastrophe is threatening to turn last year's vacation hot spots into this year's summer ghost towns. And the amount of money on the line for restaurants, hotels and the businesses that support them is staggering.

Take a look at this, $20 billion. That is how much tourism money is pumped into the Gulf Coast economy, according to Uncle Sam.

Now, about a quarter of Gulf Coast hotels are reportedly having a tough time booking guests. And so many of the would-be visitors are canceling reservations, saying they would rather stay away from the oil. But the Big Easy is fighting to keep the spill from staining its season.

Stephen Perry heads the New Orleans Convention and Visitors Bureau, and today is actually first official day of summer. Holy moley, do we feel that heat.

And the message you are trying to get across is, look, come here, spend money, vacation; it is not as devastating here as you may think it is, right?

STEPHEN PERRY, NEW ORLEANS CONVENTINO AND VISITORS BEREAU: No you are right. New Orleans has been the greatest success story in American tourism this year.

The first five months of the year, we were the number one hottest U.S. destination of the top 25 destinations.

So, the consumers have been able to discriminate between this horrible tragedy of what is going on in the Gulf, 100 miles away, and what is happening in New Orleans.

We have been sold out in 90 percent of our weekends. But we are worried about what is going to happen next.

PHILLIPS: Which is why you wrote this letter to BP, and I understand you worked closely with Mitch Landrieu, the mayor here in New Orleans. Why don't you first tell me about this plan, why you decided to write BP, and I will read a little from the letter, and we will talk about if it has made an impact yet.

PERRY: The tourism ministry joined with the mayor to make a preemptive approach to having tremendous damage in our city's most powerful industry, and the industry we depend the most on.

So it is almost like why you would lay booms in front of the marsh, or why you would lay booms in front of a pristine beach in Florida. You want to be protected. You don't want the damage to come.

So here in New Orleans, with the tourism economy dominating the city, 70,000 jobs in a third of the city's operating budget. For us, what we want to do, while we are hot, and with the momentum, we don't want to sustain the damage, damage the families, lose the tax revenues, have everybody out of work. We want to do it early.

That is good business for BP, and it is great business for the city.

PHILLIPS: So preventative maintenance, basically.

PERRY: It is absolutely preventative maintenance, and the difference of what it does here, is it takes a less costly approach. Instead of being part of the $200 billion damages fund, we want to stop it on the front end here in New Orleans; because the life-blood for us is marketing and information.

PHILLIPS: So you wrote this letter to BP, saying that tourism is perception-driven industry that must now combat the negative idea that New Orleans is covered in oil. And it goes on, saying, "For this reason, I am asking that BP make a direct tourism grant to New Orleans in the amount of $75 million over a three-year period to mitigate the long-term effects of the Gulf crisis on tourism, the largest contributor to our city's economy."

Have you heard from BP, and do you think you are going to get this money?

PERRY: We think we are going to get this money. The mayor wrote the letter so that it had the official stamp, because we wanted BP to know that this was both the city government, our leaders of the entire industry.

What is so critical about this is that if we get this, we can literally mitigate billions of dollars of damage here.

PHILLIPS: Where would you put the money?

PERRY: The money needs to go into marketing. Because for us, we are a $5 billion to $7 billion image and perception driven business.

We have to make sure that the American public understands that when you come to New Orleans, you are getting a New Orleans that looks better than it has looked in six years - hot destination.

The environment here is phenomenal. If we keep that going, what you are going to do is keep the biggest city on the Gulf Coast, New Orleans, completely7 humming, and we are generating revenues to help fight the consequences of this environmental disaster.

PHILLIPS: Now some folks in the city may say, oh, my gosh, millions of dollars into marketing, we need that money to just survive right now; pay rent, pay utilities, and be able to move forward with our lives.

Can you take some of that money and in any way, shape or form do something with regard to the conventions. So much happens here, so many people come here to participate.

PERRY: That is right. That is exactly what this money does. What this money does is literally empower 70,000 people that work in the French Quarter, and in Marianne (ph), and across the downtown of the city to keep their jobs, keep their tips and wages, pay their house notes, pay their mortgage.

And the side benefit is, it keeps the city with money to operate at a time that it is tremendously under stress.

It is a very different situation from the coastal resorts that receive cancellations. For us, we are not getting the cancellations, but now people are starting to think, should I go there now? Is this the right time?

Well, the answer is, this is the best time there is. The city looks better that it has in five, six years. And we need this money to do, as you called it, the preventive maintenance, because it is frankly, it will build good will for BP, it will be a smart business decision on BP, but more importantly, it is going to keep this most important coastal city just absolutely humming.

PHILLIPS: Well, we will follow-up and see if you get the money. Stephen Perry, thanks for your time today. Appreciate it.

How much money has BP shelled out to people whose livelihoods are covered in oil? Right now the company says it is about $105 million. But you have to think, that's a tiny drop in a very large bucket.

(COMMERCIAL BREAK)

PHILLIPS: Well, Wall Street may be getting its mojo back, the Dow coming off two straight weekly gains.

Alison Kosik at the New York Stock Exchange with the details. Alison, the rally is expected to continue today, right? So, are things finally turning around or is that too broad (ph) of a question?

ALISON KOSIK, CNN CORRESPONDENT: Well, you know, if you got a 401(k), that's what everybody is hoping for, Kyra. You know, we've been getting some positive economic news lately, and hopefully, that's going to continue. Now, over the past two weeks, the Dow has actually gained 5 percent. It's the best two weeks stretch since November. Concern over Europe's debt problems are easing a bit, and today, news out of China is boosting markets all around the world.

China says it's going to allow its currency to appreciate against the dollar. Wall Street is hoping that this is going to give U.S. manufacturers an opportunity to sell more of (ph) the China. Right now, China's currency, the Yuan is pegged (ph) to the dollar and that keeps the value of the Yuan artificially low and gives Chinese manufacturers an edge. All right. Let's go ahead and check the early numbers right now.

The Dow Industrial is up 97 points on the news out of China and the Nasdaq up by 29. BP is actually down about 3 percent right now as the markets get started. As the company says, it have spent $2 billion on the oil spill cleanup. So, Down Industrials, they're doing pretty well. Let's see if we can carry this throughout the day.

All right. Finally, the animated movie, "Toy Story 3," it was a huge hit at the box office over the weekend with $109 million in U.S. ticket sales. "Toy Story 3" is Pixar's best opening weekend ever. Not bad. And Kyra, I don't know if you had a chance to see who rang the opening bell. Are you a Meatloaf fan? I'm not talking about the food, though.

PHILLIPS: No, I didn't get a chance to see, Alison.

KOSIK: OK. Maybe we'll rock the tape (ph) at some point. He's worth looking at. Meatloaf rang the opening bell today. He's promoting a new CD. We also (INAUDIBLE) about whatever happened to him. Hmm, what have happened to him? Now, we know.

PHILLIPS: Thanks so much.

All right. Let's talk about the money the BP has paid to people down here whose lives begin to change 63 days ago. CNN's Christine Romans has that cover for us. Hey, Christine.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Hi there, Kyra. This is what we know, so far. BP has given us an update this morning of how many claims have come in and how many have gone out the door. Their total response to date now is $2 billion with a B and that includes everything from drilling the relief well to trying to cap the oil to skimming the oil off the top to the use of dispersants to grants to state and the claims process.

Of the claim process, 65,000 claims have been suspended, 32,000 have been paid about half, totaling about $105 million. It's important to know that idled oil workers, people who are not at work on oil rigs because of the moratorium on deepwater drilling, those are not covered by this claim process, there's a $100 millions fund separately set aside the arraignment between the White House and BP to handle those idled workers, a $100 million fund there.

Now, Kenneth Feinberg, he was the guy, as you know Kyra, who was the person who oversaw the 09/11 trust fund and help people be paid after 09/11. Also, how bankers will be paid from the bailed out banks after the Wall Street crisis and after taxpayers had to rescue those banks. He has a lot of history in handling a crisis and how to spread out the money and how people are determined what they should be paid. He spoke to John Roberts on "American Morning". This is what he said he's going to do in this case about BP's claims.

(BEGIN VIDEO CLIP)

KENNETH FEINBERG, INDEPENDENT CLAIMS FACILITY: I'll take a look at the historical or recent past economics of these claims, and we will quantify and calculate an award or an amount, and sit, if necessary, with the individual claimant come up with an acceptable amount. The $20 billion might not be enough, maybe it will. Whatever it takes, these individuals and businesses must get paid.

(END VIDEO CLIP)

ROMANS: He actually said, Kyra, that they're moving pretty quickly. The BP is moving quickly to put the money aside so that he can get it out the door and get it to people who need it. As you know, though, many of these people are small business. Just a month idle without any money right now. It's very, very difficult to them when they have bills that have to be paid. Also, some of the states, Kyra, this is really interesting.

Some of the states are looking at their own programs to work more quickly with BP even in the case of 48 hours to try to get some of these claims made. And Alabama, the governor said, he's actually surprised more people aren't filing claims. There's feeling that it just fruitless (ph). It's going to take too long, anyway. He's had about 1,000 charter boats that are idled right now because of the spill. Only 74 have even filed claims. So, you might see as time goes by, even more people starting to file claims which will put more pressure on BP and Kenneth Feinberg to get the money out the door -- Kyra.

PHILLIPS: All right. Christine Romans, appreciate it.

Today is the day that you can be a part in this story, a good part. Joining us tonight for an all-star telethon to help the people on Gulf. Brooke Baldwin with us now to talk more about the "Larry King Live" extravaganza that I'll get a chance to take part in tonight -- Brooke?

BROOKE BALDWIN, CNN CORRESPONDENT: Yes. Kyra, how awesome. I know that's the whole reason you're down there today. You get to take part of this long with like Larry King, Ryan Seacrest, Justin Bieber, Robert Redford. Awesome. But let me, though, for the people at home thinking what can I do to help. We have basically centralized all your questions. Maybe you're thinking you could volunteer to one lovely website.

So, first of all, it's always CNN.com/impact, right? That's the name page. Then I'm just kind of walk you through a couple different of things. First, there's this article that really kind of hammers home the point, look, it's one thing when you're responding to or you're trying to help something, it's some sort of natural disaster, Katrina, for example. But it's quite another when you have this leak in the middle of the Gulf of Mexico that this is man-made. And yes, as Christine and Kyra were just talking about, look, the party is accountable. We know they're supposed to be putting up this.

But these people along the Gulf, they absolutely need money. They need money right now. I want to focus on three charities that were helping to get money too, that's United Way (ph), the National Wildlife Federation, and the Nature Conservancy. And who would you be supporting? You will be supporting the families, people along the Gulf Coast who need money, need the keep electricity on, food, and of course, wildlife. So, that's the money side.

Here's my favorite part. Look, you can volunteer. If you actually do or if you're fortunate enough to have time to go to the Gulf, we are outlining a couple of different ways in these articles that show how you can help. Now, of course, you can't come in direct contact with some of these oily birds. You can't touch the oil, but there are things you can do. Basically, you're the eyes and ears of some of the officials. You can help take pictures of some of the oil that's washing ashore, things like that. But if you don't have time, we're all busy, you have kids, you're thinking, how can I help? How can I give? But I can't quite get down to Louisiana, to Florida, to Mississippi.

A couple of things and we outline that in this article. And I think one of my favorite things here, you can actually adopt a pelican. It explains who it would be going to. You can write letters to your congressman and your senators. Of course, you can tweet.

So, what I've done is that I've pulled up my Twitter page, and what we are trying to do is, of course, tweeting ahead of the tonight's telethon that starts today and just briefly help us make hash tags, CNN help Gulf com trending today. We'll all be watching and waiting for this exciting telethon. And Kyra, we know you're a part of starting tonight at 8:00 p.m. eastern. Back down to you.

PHILLIPS: You know, it's pretty awesome to see all the ways that we can pitch in and help from just going to our phones and texting a donation to volunteering. Now, you're saying sponsor a pelican. You can even sponsor and adopt a fishermen. You know, and it puts into perspective, Brooke. When something like this happens, when it's a manmade disaster, so many of us kind of sit back and think, oh, OK, whoever created that disaster, it's their responsibility to fix this. So, you know, we're looking to BP. We're looking to the government.

We're looking to the President of the United States to hold the right people accountable, but the bottom line is that we still have to give. We still have to help out because people are suffering by the minute. And the majority of people can't wait for the checks to be cut, so this is going to help these individuals directly through the three charities that you mentioned. It is going to be hands on, and it's going to be a pretty amazing evening. Thanks, Brooke. I really appreciate it.

BALDWIN: Thank you. PHILLIPS: Well, straight ahead, the smoke is so thick in Arizona that it's actually blocking out the sun. A wildfire has exploded to more than 5,000 acres, and it is nowhere near contained.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories now, it's day 63 of the Gulf of Mexico oil disaster. BP says it has spent $2 billion on the cleanup so far. Oil drilling companies go to court today to overturn a six- month government ban on deepwater drilling.

Montana's governor today looking over the damage from a tornado. A twister ripped off the roof of a sports arena in billings. No deaths or injuries reported there.

Wildfire near Flagstaff, Arizona, is now more than 5,000 acres. No containment at all. 748 properties evacuated, including two national monuments. We're back from New Orleans in just a moment.

(COMMERCIAL BREAK)

PHILLIPS: Joran van der Sloot says he was tricked into confessing to the brutal murder of a young Peruvian woman. van der Sloot story appears in a Dutch newspaper as he prepares to make a statement before a judge this morning. Jean Casarez from our sister network, "In Session," has been covering this case for us. She joins us now live from Lima. So, Jean, van der Sloot set to appear in court today. Tell us more.

JEAN CASAREZ, CORRESPONDENT "IN SESSION": That's right. Good morning, Kyra. You know, we are right outside Castro Castro. This is the prison where Joran van der Sloot is being held. The driveway is right behind me. It takes you up to the front entrance.

Now, the reason we're here is that the formal proceeding today is going to take place here at the prison. Normally, it would be held in the courtroom in the palace of justice, but because of the notoriety of this case, Judge Cordova is coming here to the prison to a facility onboard the campus that is a type of courtroom.

Now, what we expect to happen today, as per Peruvian law, the defendant, Joran van der Sloot, is required to give a formal statement to the judge. This is part of the investigative process. We expect the prosecutor to be there, the defense attorney to be there, and, of course, the judge. And the Flores family and their attorney can be there if they so choose.

Now, Maximo Altez told us last night and that is the attorney for Joran van der Sloot that he will not allow his client to talk at all about the facts of this case, but merely to say to the judge in his formal statement that his rights have been violated because of a confessions that they say was not tantamount to the law here in Peru.

PHILLIPS: Jean Casarez, we'll follow he case with you. Thanks so much. Now, the White House says our troops will begin leaving Iraq July 11, but we're hearing something different now from top military commanders. More on that right after the break.

(COMMERCIAL BREAK)

PHILLIPS: U.S. military faced a challenge going into Afghanistan, now they are facing a challenge getting out. The White House says that the exit deadline is July 2011, but we are hearing something different from top military commanders.

CNN's Barbara Starr is live at the Pentagon. So Barbara what's this all about?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, you know, Kyra, July 2011 is the date President Obama set for the beginning of the withdrawal of U.S. forces from Afghanistan, but we're beginning to notice that different officials, top officials in the administration, are speaking about this date on the calendar in quite different terms.

Listen to two of the biggest guns in Washington.

(BEGIN VIDEO CLIP)

RAHM EMANUEL, WHITE HOUSE CHIEF OF STAFF: Everybody knows there's a firm date and that firm date is a date that deals with the troops that are part of the surge, the additional 30,000. What will be determined at that date or going into that date will be the scale and scope of that reduction but there will be no doubt that that's going to happen.

GEN. DAVID PETRAEUS, U.S. CENTCOM COMMANDER: My understanding of what July 2011 means and how it is important again that people do realize especially our partners, especially our comrades in arms in Afghanistan and in the region, that that is not the date that when we look for the door and try to turn off the light, but rather a date that which a process begins.

(END VIDEO CLIP)

STARR: So what's really going on here, Kyra? Well, look, Rahm Emanuel, the Chief of Staff for the White House, is speaking to a political audience, to voters, saying the President is going to stick by his promise. The troops will start coming home in 2011.

General David Petreaus who oversees the war in Afghanistan, perhaps a bit more cautious speaking to his Afghan counterparts there and trying to reassure them that the U.S. isn't going to just pack up and leave.

Are the two men on a different page? Who knows, but if they're on the same page, it sure looks like they're reading from different paragraphs -- Kyra.

PHILLIPS: Well, and we wonder and I mean, you think we'll expect to see more of this disconnect in language describing the war in Afghanistan.

STARR: You know a lot of people are looking for that. Now because the war is by all accounts going slower in key areas than expected. That offensive into Kandahar, for example, the real heartland, the homeland of the Taliban insurgency, the chief spokesman at the Pentagon already has had from the podium to talk about a rhetorical difference between Defense Secretary Gates and the Chairman of the Joint Chiefs, Admiral Mullen, about how important Kandahar may really be to winning the war in Afghanistan.

A lot of different language being used there, different language being used to describe the upcoming progress report that's expected by the end of the year. Casualties are up. Parts of the war are going slower than expected.

So expect to see some maneuvering room trying to be established here in case they can't really keep to the schedule. But nobody wants to be the one to tell the President that because, Kyra, this is the only strategy they have -- pardon me -- that they have right now. This is the only game in town. There is no Plan B for Afghanistan. This is the best they got -- Kyra.

PHILLIPS: Barbara Starr, live from the Pentagon. Barbara thanks.

You can't think about the Gulf Coast without thinking about seafood, right? So how do we know what's safe to eat? It turns out our most high tech detector is right in front of our eyes. We're talking to a chef about the so-called sniff test, coming up next hour.

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PHILLIPS: Of course, those affected the most by this massive spill in the Gulf are the businessmen and women whose livelihoods are being devastated -- devastated by the day. It took 40 years for fisherman Stu Scheer to build his charter boat fishing boat business but between the oil disaster and battling with BP over his claim, Scheer says his business now has pretty much shut down.

(BEGIN VIDEO CLIP)

STUART SCHEER, CHARTER BOAT CAPTAIN: Excuse me. You wonder how a guy my age at 260 pounds could be emotional. Sorry. But, you know, it's like I told you. Salt water runs through my veins. It's all I've done. It's all I've ever I wanted to do was fish.

(END VIDEO CLIP)

PHILLIPS: Scheer's bookings for this year amounted to a gross net of $107,000 but he says BP has only offered him $33,000.

Call it southern hospitality, Gulf Coast charm or just plain old lending a helping hand to a neighbor in need, but a lot of local businesses along the Gulf Coast stepping up to help bridge the gap, donating proceeds to those who are down and out. You may recognize Brian Batt from AMC's "Mad Men", he plays Salvatore Romano or Salvatore Roman -- I better say it with a good, you can help me Brian with that. But he's a New Orleans native and a business owner who is here giving back, of course.

I know you are doing a lot of fund-raising through your store "Hazelnut". We'll talk about that for a minute because we were having a debate about your "Mad Men" role. Salvator or Salvatore

BRIAN BATT, ACTOR: It could be Salvatore or Salvator. He likes to be Americanized so he said Salvator.

PHILLIPS: Excellent.

BATT: Plain old Sal.

PHILLIPS: We will give a shout out to one of the most popular shows on television. But you are -- you were born and raised here. This is your hood. You are watching this devastation unfold right in front of you.

But hey, you're not caught up in your commitment to your real job right now. You have got so many other things going on, as well. You own a business here.

BATT: Yes.

PHILLIPS: Hazelnut.

BATT: I have a store called Hazelnut. We opened in 2003, reopened right after Katrina. We are open now and doing whatever we can. In fact, we're giving a percentage of all the sales of a fabric called punch train beach that I designed and all the products to Second Progress of Great New Orleans and Arcadiana as we did after Katrina. This organization gets food directly to the people who need it, whose lives have been compromised by the oil spill and there's no middle man.

PHILLIPS: And you, I mean since you were born and raised here, you are seeing families that you have known since you were a kid being affected by this.

BATT: Oh, yes. Everyone's affected by it. The seafood industry here in southern Louisiana provides the nation with almost 30 percent of its seafood, and it comes from our Gulf. That mouth of the Mississippi is without a doubt one of the most fertile fishing grounds in the world. We have more mahi-mahi and yellow fin tuna in that Gulf than anywhere else in the world.

But what is one good note is that there are some areas that are still able to be harvested. And I was at Dicky Brennan's oyster --

PHILLIPS: The Brennan family -- we want to say the Brennan family is an institution here in New Orleans.

BATT: I spoke with Dicky last night and -- you have the Bourbon House that's known for their oyster bar. And he said, you know, people are coming in wanting oysters, and they're getting them.

All of the locals have been supporting all the local restaurants. And I think what also will be great is the rest of the country coming down to New Orleans. I know you can great airfares and great hotel spots. It's a little warm but there's a heat wave all over the country right now. So I think that was just --

PHILLIPS: Come here.

BATT: Come here and enjoy.

PHILLIPS: You actually were a part of the big advertising campaign that's happening right now. You are in some of these commercials. Of course, they wanted to get your acting ability involved in some powerful --

BATT: It's a true statement. Everything in New Orleans is normal, well, our kind of normal.

PHILLIPS: Unless you live here, you don't really truly appreciate what you just said.

BATT: You know, there's a different kind of way of life here. We handle tragedy in a different way, you know. Yes, everyone's upset. Everyone's mad. There are so many things people can do about this.

Besides coming down and supporting the businesses here or online. They can also contact their legislators. It's been 63 days since this has happened and it's still not capped. It's another very important factor. Until this is capped, this well, we don't know really what's going to happen.

I think -- everything is speculation so far of the long-term problems. Get this capped and then there will be time for finger- pointing and I guess, making speeches that you have to apologize for and empty promises.

But right now, the main thing is to get that well capped. So contact your Congressman and let them know that the Gulf is important to the rest of this country and to everyone's way of life here. And it needs to be restored and taken care of.

PHILLIPS: I want to point out, too, this is very typical New Orleans, locals giving back and not forgetting their roots. Even though you have made it big on Broadway, you continue to give back. You have the role on "Mad Men", very successful show. You have your start at La Petite -- right over there.

BATT: La Petite, right over there, yes.

PHILLIPS: I've been there. I've seen shows there.

BATT: It's a beautiful theater and I'm on the board now and I try to do everything I can to help there. It's blossoming, it's wonderful. PHILLIPS: Well, you're going to do fundraising there, right?

BATT: Yes, yes. We're doing a fundraiser for the Gulf on the 11th. And it's called "Celebrity Autobiography." And it's me, and I think Ryan Reynolds, and the wonderful John Goodman, and Jennifer Coolidge, and my friend Mario Cantone, and some others. And we read excepts from trashy celebrity autobiographies. So it's going to be fun. There will be lots of cocktails and celebration, but raising a lot of money for the Gulf effort.

You know, it's one of these things. I was taught, as a kid, you have to do what you can do with what you've got, you know? And it's just been bred in me to do that. I think if everyone did what they could, a lot of these problems would quickly be solved.

PHILLIPS: It's our duty to do that. I feel that, too, as a journalist.

BATT: Exactly, and you do.

PHILLIPS: You've got to give back.

So great to see you.

BATT: Great to see you.

PHILLIPS: It's a pleasure.

BATT: Thank you.

PHILLIPS: A great way to start the hour. I could talk to you for the next two.

BATT: I'll be here.

PHILLIPS: Don't leave me.

BATT: They called to do the telethon later on. I will be there.

PHILLIPS: You'll be there. Good. Outstanding. Bryan, thanks so much.

That's true. Tonight, 8:00 to 10:00 Eastern time, on "Larry King Live." Bryan is going to take part in the telethon to raise money for three specific charities, to help folks here throughout the gulf region. We're going to talk more about that in the next hour. But let's kick it off.