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Oil Rig Explodes in Gulf; Hurricane Earl Approaching East Coast; Home Buyers Needed

Aired September 02, 2010 - 11:59   ET

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


TONY HARRIS, CNN ANCHOR: Just in to CNN, the Justice Department has filed a lawsuit against Sheriff Joe Arpaio, he is the sheriff of Maricopa County, Arizona. We understand the lawsuit says that Sheriff Arpaio has not cooperated with the department's probe of alleged discrimination by his office. The Justice Department gave Arpaio until August 17th to hand over documents it first asked for 15 months ago.

So what's the at the crux of this? It seems negotiations have failed to produce an agreement on the government's request for documents to investigate possible discrimination against Hispanics.

We will continue to follow developments on this front.

And, of course, breaking news from the Gulf of Mexico, it will sound all too familiar.

An oil rig 90 miles south of the Louisiana coastline is burning right now. It exploded last hour. Thirteen workers were on the rig. Rescue vessels, we understand, are on the way.

The rig is owned by Mariner Energy company and based in Houston.

I talked with a Coast Guard petty officer a short time ago.

(BEGIN VIDEOTAPE)

PETTY OFC. BILL COLCLOUGH, U.S. COAST GUARD (via telephone): Well, we received a report at approximately 10:30 a.m. that an oil rig approximately 90 miles south of Vermilion Bay in the Terrebonne Bay region of Louisiana, that an oil rig owned by Mariner Energy exploded. The 13 crew members aboard the platform, they abandoned the rig. Twelve have been accounted for -- they all have been accounted for.

One is injured. The 12 are in emergent suits. Four Coast Guard rescue helicopters from Air Station New Orleans and four Coast Guard rescue helicopters from Air Station Houston are en route, as well as the Coast Guard cutters Decisive, Manta, Skipjack (ph), and four civilian vessels as well.

HARRIS: Wow. Bill, let me just sort of check these numbers with you.

So, 12 accounted for. Were there 13 on the rig? My reporting in front of me says 13 people were on board the rig. COLCLOUGH: Yes. We have -- yes, there are 13 that were reported to be aboard that rig, and all have been accounted for. Twelve are in emergent suits and one is injured.

HARRIS: OK.

COLCLOUGH: And they will be taken to Terrebonne General Medical Center.

HARRIS: Do we know anything about the circumstances -- I know it's very early -- of what might have happened here?

COLCLOUGH: We don't know what caused the rig to catch on fire, but the incident is under investigation.

HARRIS: And we are talking about an explosion and fire?

COLCLOUGH: Yes, there is -- the rig -- there are reports that the rig is still on fire, and that will be -- the cause of the incident will be under investigation and is under investigation as well.

HARRIS: And since we are talking about an oil rig, I have to ask the question, are we aware of any leak from this rig?

COLCLOUGH: There are reports that the rig was not actively producing any product, so we do not know if there's any additional concerns of pollution even though it was not producing product.

HARRIS: So, Bill, just sort of to recap here, we've got an explosion and a fire on this rig about 90 miles south of Vermilion Bay, Terrebonne Bay region?

COLCLOUGH: Yes, that's correct. It's Vermilion --

HARRIS: Thirteen people -- go ahead.

COLCLOUGH: It's 90 miles south of Vermilion Bay.

HARRIS: All right. And 13 people were on board this rig. Everyone has been accounted for at this point?

COLCLOUGH: Yes, that is correct. And Coast Guard helicopters and Coast Guard cutters are en route to rescue these people as soon as possible.

HARRIS: And Bill, no word yet as to whether or not there is a leak, an oil leak associated with this explosion and fire?

COLCLOUGH: That has not been determined. That will be under investigation.

(END VIDEOTAPE)

HARRIS: Let's do a little bit more on this. Associate professor Jean Beck from Texas A&M is on the line with us right now. Professor, good to talk to you. First of all, what do you know about this particular rig?

GENE BECK, TEXAS A&M UNIVERSITY (via telephone): I don't know anything about this particular rig. I'm just trying to look at some of the information. I was just notified of this just a few minutes ago.

You know, just on the surface from what I'm looking at, you know, there's a low number of people on the rig, 12 to 13 people. It's in shallower water. It's 450 feet of water.

The gentleman from the Coast Guard referred to it as a platform, which would tell you it's not a floating vessel, it's bottom- supported. And that would all mean that, you know, the leak and the explosion and the containment, the blowout preventers and everything that would be on the rig, would be probably up on the platform, as opposed to sitting on the seabed.

HARRIS: Is there a difference between a production platform and a drilling rig?

BECK: Yes. There's quite a bit of difference.

Now, at times, a production platform can host a drilling rig. A rig can set up and work on the platform, and that with appear to be what was happening here. But there are several types of drilling rigs.

This could have been what we call a workover rig, where they were working on an existing well, as opposed to trying to drill a new well. And of course, we don't know all of that. That's all speculation.

But the number of people involved, my immediate suspicion is that this was a workover rig working on an existing, producing well. And, you know, what we call a shelf, so not in deep water. So on production platform out on the shelf. That's where I'm going with it right now just with what I know.

HARRIS: Sure. Any thoughts as to whether or not whatever this is, if you get an explosion and a fire, as we've had in this case, would you expect there to be some kind of oil spill, some kind of leak associated with this?

BECK: I don't -- I wouldn't say spill yet. And I wouldn't even go to oil yet.

My first suspicion would be gas, because generally when you have an explosion, it's driven by high pressure, which is usually natural gas, as opposed to oil. So, I mean, my suspicion would be that it was a natural gas well that blew out during a workover. But once again, that's pure speculation on virtually no information on my part.

HARRIS: Well, we're going to get some more information. We'll certainly circle back with you.

Associate Professor Gene Beck, Texas A&M.

Professor, thanks for your time. We appreciate it.

We're going to get the latest on Hurricane Earl in a live report from our Rob Marciano in just a couple of minutes.

You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: So we're still trying to gather as much information as we can on this oil rig explosion in the Gulf of Mexico, the Vermilion Oil Rig 380 owned by Mariner Energy.

This is the Terrebonne Bay region there. Thirteen people on board the rig at the time of the explosion. Everyone has been accounted for.

One of the 13 workers suffered injuries, but the good news here is that everyone on that rig accounted for, and just one person with injuries. And we don't know the extent of the injuries at this point.

The speculation now suggesting that it might have been a natural gas explosion, but that is still very early at this point. And so we're going to continue to follow developments here.

At this point, no suggestion that there is an oil leak or spill associated with this explosion and fire on the Vermilion Oil Rig 380, but we are still very early in this process. The investigation is probably just getting under way at this point.

The good news is that everyone on board that rig, all 13 people, have been accounted for. Just one injury at this point.

We will continue to work it and get as much information to you as we can, as soon as we get it.

CNN is your hurricane headquarters, and right now we are tracking Hurricane Earl as it closes in on the East Coast.

North Carolina likely to face the storm as early as tonight. Forecasters are not expecting a direct hit, but we will check that with our forecasters. But it will be plenty bad enough.

While North Carolina is first in line, warnings and watches are in place all up and down the East Coast, all the way up to New England. This storm bigger than the state of California, if you can believe that.

(BEGIN VIDEO CLIP)

GOV. BEV PERDUE (D), NORTH CAROLINA: It's a serious storm, and we all need to treat it like a serious storm. We're watching very carefully and will all night what happens to the storm as it approaches closer to our coast. We believe we'll begin to get winds late this afternoon along the eastern part of the state, and they're telling me that Raleigh may not feel much at all. And no rainfall is predicted for this area right now.

(END VIDEO CLIP)

HARRIS: OK. The quiet before the storm.

CNN's Rob Marciano -- is that a wind surfer, Rob, that I just saw you go by you here?

ROB MARCIANO, CNN METEOROLOGIST: Yes.

HARRIS: Kill Devil Hills is where Rob is now in North Carolina.

You've got some surf, and you've got people who are out and just waiting to see what they can see of Earl.

MARCIANO: Yes. Well, we're very close to where the Wright brothers took their first flight, and the gentleman behind me on the kite board doing his best to get airborne in these big winds and waves, which have been picking up, by the way, over the last couple of hours.

So, wind freshening and the clouds lowering. And lifeguards have their hands full.

It's supposed to be a no-swim zone. Surfers and kite boarders they give a little bit more latitude to. But look at this. I mean, it's a little bit of surge here.

We are coming up on high tide, and this is as high as I've seen the water come. So, clearly at the peak of the storm, which will be another 12 hours, when we see high tide again, 1:00, 2:00 in the morning, that's going to time out right to be when this thing is going to be parallel to us, if not right on top of us. So I'm guessing that the waves are going to be up here near this dune.

Now, the good thing about North Carolina beaches is that a lot of them are protected by big dunes, unlike the Gulf of Mexico. So surge isn't a huge issue, but these waves can get monstrous. And an areas where there's not the big dunes, you can get washouts, you can get roads that are completely cut off. So that's going to be the fear here as this storm comes on board.

We do have evacuations, mandatory evacuations for all visitors here in Dare County, and actually pretty much the entire Outer Banks. And then some mandatory evacuations for residents in some of the outlying islands.

The forecast hasn't changed a whole lot. If it does jog a little bit farther to the west, we're going to see Cat 2, Cat 3 winds here, and we'll be right in that eye wall. But as it stands now, we're hoping that forecast verifies, Tony, and that would probably just give us Category 1 strength winds here around midnight tonight.

As the guys back in the CNN Severe Weather Center have been telling you, it's still too close to call. When the storms parallel the coastline like this one is going to do, any jog to the left and we're in trouble. And things are starting to get a little bit more ominous for the first time since we've been down here -- Tony.

HARRIS: So, Rob, when does mandatory not mean mandatory when you've got people there on boards?

Will you do me a favor? Will you turn around and just give me a little play-by-play? Because while you've been talking to us, we've been watching people just ripping it up out there.

Will you just turn around and take a look at what you're seeing and describe it for us, please?

MARCIANO: I didn't hear quite the last part of your question, but let me just make this point. This is America, right? You really can't force somebody to leave.

HARRIS: Yes.

MARCIANO: So when they say "mandatory," they really mean, we strongly advise. And you know, otherwise they'd be taking us away in handcuffs, too.

HARRIS: That's terrific.

MARCIANO: So we're going to broadcast this for you throughout the evening as safely as possible and give you a taste of what storms can do to the U.S. coastline this time of year -- Tony.

HARRIS: That was well-handled, Rob. That was very good.

All right. Let's get the latest dynamics on this storm. Reynolds Wolf is in our hurricane headquarters.

(WEATHER REPORT)

HARRIS: Happening now at the State Department, direct peace talks between Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas. Both sides agreeing to work toward a final deal within one year.

The talks face serious, serious obstacles. A key Palestinian demand is that a freeze on Jewish settlement activity building in the West Bank be continued, but settlers in a community where four people were killed on Tuesday resumed building settlements there on Wednesday.

Secretary of State Hillary Clinton acknowledged the challenges while pushing forward for peace.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, SECRETARY OF STATE: We understand the suspicion and skepticism that so many feel borne out of years of conflict and frustrated hopes. The tragic act of terror on Tuesday and the terrorist shooting yesterday are yet additional reminders of the human costs of this conflict.

(END VIDEO CLIP)

HARRIS: We will take a closer look at the obstacles later this hour in live reports from Jerusalem and Ramallah.

Let's give you a quick update on what we know.

Connected to the Vermilion Oil Rig number 380 owned by Mariner Energy, it exploded a little over an hour ago about 90 miles south of Vermilion Bay. Thirteen people, workers on board that rig, all of them have been accounted tore. One suffering injuries. We do not know at this point the extent of the injuries.

And this is being described now as a production platform. An explosion and fire, 13 people all accounted for. That is the good news.

We will continue to update the story for you right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: OK. We want to give you just another quick update on the developing story, the breaking news from about an hour ago. And we're talking about a rig explosion.

Still caught between whether this is a producing rig, a drilling rig, or a production platform. And there is a difference.

It is the Vermilion Oil Rig 380, owned by Mariner Energy. And the explosion happening about an hour ago, about 90 miles south of Vermilion Bay, in the Terrebonne Bay region.

Thirteen workers on board the rig. All of them hit the water, all of them now accounted for, one with injuries. And we don't know the extent of the injuries.

There was an explosion. There is a fire ongoing, we understand.

We will continue to try to gather additional information on this and update the story for you.

If you need a home, listen up for a second here. Habitat for Humanity of Indianapolis needs some first-time home buyers. They say they won't be able to build any new homes next year unless they have qualified families for them.

Daniel Miller with our CNN affiliate WISH has the story.

(BEGIN VIDEOTAPE)

DANIEL MILLER, REPORTER, WISH (voice-over): In the 1000 block of East 9th Street in Indianapolis, volunteers are busy working to finish this new home. On Thursday, a new family moves in. It's their first home built by Habitat for Humanity.

UNIDENTIFIED MALE: This is our first home that we've ever gotten before the Indianapolis Historic Preservation Commission.

MILLER: This hope is one of dozens Habitat builds each year in the Circle City, but for the first time the organization says they're in need of families to fill them.

UNIDENTIFIED MALE: We need a bank of families to be able to work with here in the city.

MILLER: Jennifer Coffey says Habitat is looking for 30 first- time home buyers. She says they won't be able to build unless they have a family.

JENNIFER COFFEY, HABITAT FOR HUMANITY: Needing 30 families means that we're putting some homes on hold a little bit.

MILLER (on camera): In order to be eligible for a Habitat home, families have to meet the qualifications. Coffey says the biggest hang-up? Families fear of taking on a mortgage.

COFFEY: If a person is paying more than $400 in rent, they're kind of throwing their money away, especially to low income.

MILLER: But already this year, Coffey says a few Habitat homes have gone into foreclosure, leaving them vacant.

COFFEY: There is a mortgage payment that these families have to pay. The average is $350. So if they don't pay the $350, then unfortunately they can't stay.

MILLER: Habitat says they hope this sends a message to low- income families, if they want a home now is the time.

(END VIDEOTAPE)

HARRIS: All right. Let's get you to the daily briefing, the White House daily briefing.

White House spokesman Robert Gibbs offering some comments on Hurricane Earl.

(JOINED IN PROGRESS)

ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: And we will let you know when that happens.

Yes, ma'am?

QUESTION: Do you have any sort of update to offer on how the talks are going so far?

GIBBS: Well, let me give you just a little bit from -- well, obviously, as you all know, the talks are ongoing. We expect that at some point, I would say in the next hour or so, Senator Mitchell, our special envoy for Middle East peace, will conduct a briefing on what has transpired today. I would say that the president was encouraged in his meetings yesterday by the very serious attitude that each of the leaders brought about these talks and about a long-term lasting peace for the Middle East. All viewed this as a tremendously important opportunity.

I think you all saw the pictures last evening and the powerful statements that were made by the leaders in the Middle East. I would also say that the president has, as he did in the Rose Garden yesterday afternoon, reminded everyone that there are still deep divisions, there are still years of mistrust to overcome.

That's not going to be wiped away in one meeting or in one day, and we understand that. The failure, though -- failure to try is not something the president wants to do.

QUESTION: (INAUDIBLE) one of those deep divisions against Hamas. How does the administration plan to deal with them? They don't recognize Israel. They're promising more attacks. Is there a plan for dealing with Hamas?

GIBBS: Well, look, why don't I defer questions about what transpired today in the talks until Senator Mitchell has an opportunity to answer some of those questions at the conclusion of the meetings today.

Yes?

QUESTION: Robert, the question about Christina Romer's remarks yesterday, she said -- I have in front of me -- "The only surefire way for policymakers to substantially increase aggregate demand in the (INAUDIBLE) are for the government to spend more and tax less."

HARRIS: OK. You just heard the White House spokesman, Robert Gibbs, give a bit of an update on the peace talks going on right now at the State Department.

When we come back, we will take you live to Ramallah and Jerusalem for Palestinian and Israeli views on prospects for Middle East peace this time around.

(COMMERCIAL BREAK)

HARRIS: A very busy day in the CNN NEWSROOM. Two big stories that we're following for you right now.

On the left of your screen, it is the story of the production platform explosion. And I think that's what we're referring to it as of this point. We're still working on ultimate clarification on this, but a production platform explosion in the Gulf of Mexico about 90 miles south of Vermilion Bay.

Again, about -- OK. Let's get back to the White House briefing, because we believe Robert Gibbs is talking about the rig -- the platform explosion.

(JOINED IN PROGRESS) GIBBS: Here's what I know before we came out here. This is a -- I'm told this is a production platform about 100 miles off the coast. I'm told the depth of the water is about 340 feet. So this is not a deepwater facility.

As I understand it, the well was not in active production. I will in some ways reiterate what I think the Coast Guard has said in a statement that they have released, and that is that they responded to the preliminary reports of a fire on board an oil platform in the Gulf.

The initial report that we got were that 13 persons -- 13 people were on the platform, they are accounted for. One is injured and is on his way out of that area.

Two Coast Guard cutters, multiple Coast Guard aircraft were en route. One Coast Guard helicopter was on the scene.

We will continue to gather information as we respond. We obviously have response assets ready for deployment should we receive reports of pollution in the water.

QUESTION: Is the president convinced that the inspection of rigs in the Gulf of Mexico is moving fast enough?

GIBBS: I've not gotten a recent update on that. I will try to get one.

Obviously, we had taken some -- we took a series of steps after the BP incident, primarily around deepwater drilling. Let me not go too much further than what I have. And if this situation warrants, we'll certainly update that.

I will say the president was in a meeting in the Situation Room. I don't know if he's been notified. John Brennan, who is in that meeting, does know about the incident. Just don't -- before somebody asks, I don't know whether or not --

QUESTION: (OFF-MIKE)

GIBBS: It's a national security meeting -- that John had or had not had a chance to discuss that with the president.

QUESTION: Is there somebody in charge just following up with the Coast Guard?

GIBBS: I do not know who is on the scene, but you can -- the Coast Guard -- obviously the production facility is located in federal waters. They are the ones that are in response. I don't know if there's a -- who the highest-ranking person is on the scene.

QUESTION: And just following up on the Middle East peace talks, what does the president see as his role going forward now? Does he feel like he's appropriately set the stage and now it's Secretary Clinton who is taking the lead? And if there's additional talks, say, hosted by Egypt, would the president be the one who would be attending, or is he stepping back now and letting others --

GIBBS: I don't -- I don't -- I don't want to make any scheduling pronouncements. I'll do this in a couple ways. Obviously, Secretary Clinton has -- is conducting and is the lead on this, as she conducts these meetings today.

Obviously, our special envoy George Mitchell has spent a lot of time in the region, as has the secretary.

Look, we have said this from the very beginning, and as I mentioned the other day, one of the very first things the president did upon walking into the Oval Office that very first full morning was to make calls to leaders in the region, some of whom obviously were here yesterday.

I think this is true historically, and that is, when we are actively involved and engaged, there is a better chance for peace.

That's been President Obama's viewpoint and it -- and the whole team's viewpoint. So I can't speak to what our involvement would be at different points in this. I'd leave that for a, sort of, situational discussion.

But obviously, we have, over the past many months, been actively involved and engaged and will continue to be actively involved and engaged, as the best way to make progress, we have always felt, is to do so the same way they're doing today, and that is to sit at that table and have direct talks.

And does the president see this scenario differently, more optimistically than previous administrations, A, because of more stability in the West Bank, or because of a potential mutual threat from Iran becoming nuclear?

QUESTION: How does he see this as any different than previous administrations?

GIBBS: Well, again, I think -- first and foremost, I think the president felt the meetings yesterday, as he said, were productive, and believed that each of the leaders was genuine and serious about seeking peace.

You know, at the same time, we understand that this is -- as I said earlier, this is -- this is something that has eluded generations. We're mindful of that.

So we will stay engaged. We will do what is necessary. And we hope that each side will continue to take steps necessary to make -- build confidence and make these talks productive.

QUESTION: Does he believe that the mutual -- potential mutual threat by a nuclear Iran is helping bring these two sides together?

GIBBS: Well, again, we have always maintained that peace was in the best interest of each of these entities involved, regardless of anything else in the Middle East. I think that -- that was true when the president first came in, and it certainly is true in his (INAUDIBLE) actions today.

QUESTION: The numbers for members of Congress have gone through the floor in recent weeks for the Democrats. Why do you think that is? And why hasn't the president done more during a recess - obey (ph) orders, basically -- to try to shore them up?

Looks like, you know (INAUDIBLE) spot.

(CROSSTALK)

QUESTION: -- numbers for members of Congress, polling numbers for people who are running for office. Democrats' numbers have nosedived during the month of August.

(LAUGHTER)

GIBBS: Sound like a radio guy when (INAUDIBLE).

QUESTION: I could give you a chart, but you get the idea.

GIBBS: Yes, look -- we are -- the president will continue to make a very active case for the steps that the administration is taking, and why we have to continue to move forward on that path.

QUESTION: He didn't do much during August. Why not?

GIBBS: I will say this: The -- the president has been fairly active in both campaigning and in raising money. The -- what the president is helping the Democratic National Committee do is something that the Democratic National Committee has have never done in supporting Senate and congressional candidates. And it's something we'll continue to do.

HARRIS: OK. Let's do this. Let's circle back to the breaking news that we've been following for you here in the CNN NEWSROOM. And that's the story of the production platform explosion in the Gulf of Mexico. You heard the White House spokesman, Robert Gibbs, refer to it just moments ago when he referred to a statement from the Coast Guard.

I have the statement. Let me just read the statement -- it's brief -- to you. "The Coast Guard and other federal partners responded immediately to preliminary reports of a fire on board an offshore oil platform in the Gulf of Mexico. Our initial information says that all 13 persons are accounted for and safely aboard a commercial vessel, and one is injured. Two Coast Guard cutters and multiple Coast Guard aircraft are en route. One Coast Guard helicopter is on the scene. We continue to gather information and will respond with full force and we have oil spill response assets immediately ready for immediate deployment, should we receive any reports of pollution."

Again, this is an explosion and fire on board a production platform. Thirteen workers all accounted for, one with injuries. We will continue to update this story as we get additional information.

Let's take a quick break, and we're back in a moment. You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: So, a lot of federal assets in the general area of this production platform explosion in the Gulf of Mexico, let's see, 90 miles south of Vermilion Bay, in the Terrebonne Bay region. The Coast Guard right now with an aircraft - multiple Coast Guard aircraft on the way. One Coast Guard helicopter on the scene right now.

This is an explosion and fire that took place about -- I guess, about an hour, or certainly, an hour - maybe a little more than an hour ago. Initial reports had 13 workers in the water. Everyone has been accounted for at this point in time. One workers suffering injuries. We don't know the extent of the injuries.

But again, the Coast Guard is responding in force to this explosion and fire. We don't know of any spill or any leak of oil associated with this at this point. But let me read this other line from the Coast Guard statement. The Coast Guard saying that it "has oil spill response assets ready for immediate deployment should we receive any reports of pollution." So we will continue to follow this story and bring you updates as we get them.

Now to the difficult work of peacemaking, happening right now at the State Department. Israeli prime minister, Benjamin Netanyahu, and Palestinian Prime Minister Mahmoud Abbas face-to-face, both agreeing to work toward a final deal within one year.

But the talks face some serious obstacles. And we want to focus on that from both perspectives. CNN's Paula Hancocks is in Jerusalem, and senior international correspondent Ben Wedeman is in the West Bank town of Ramallah.

Paula, let me begin with you. What is the biggest obstacle to peace in the eyes of Israelis?

PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: Well, Tony, it has to be security. This is the one thing that the Israeli prime minister said consistently throughout the past few years. And during this speech that he just made, he mentioned this word so many times.

And the fact is, he's strengthened in his desire for security and call for security because over the past couple of days in the West Bank, there's been two attacks from Hamas. Now, on Tuesday night, four Israeli settlers were killed in a drive-by shooting. Wednesday night, two Israeli settlers were injured in a drive-by shooting.

So, this is what the prime minister is trying to put across, the security. But of course, what could (INAUDIBLE) everything is the issue of those Israeli settlers in the West Bank.

Now, Mr. Netanyahu has his work cut out for him in Washington, but back here, there's a lot going on. Those settlers are now starting to ignore the ten-month settlement freeze, and they're building settlements once again. They say it's in reaction to what happened over the past couple of days. They don't believe their prime minister should be talking peace. So now, they're just ignoring the freeze and carrying on with construction. Tony?

HARRIS: Paula, can a fractured Palestinian government deliver on any promises on security?

HANCOCKS: Well, certainly, the Palestinian authority, which is in control of the West Bank - this is Palestinian president Mahmoud Abbas' government, is able. Certainly, they've increased the security in the West Bank immeasurably over recent years. I mean, you remember back to the early 2000s, and security was very bad. But they've got the security forces in place. They are a lot stronger.

But of course, Gaza is a completely different matter. This is run by Hamas. So, the question is, how do you marry the two? The two haven't managed to get a unity government and to agree on a unity government at this point. And while you possibly can start these talks without Hamas on board, you really can't finish them without half the Palestinian people being represented. Tony?

HARRIS: Paula appreciate it, thank you.

Ben, same question to you. What is the main obstacle to peace in the eyes of Palestinians?

BEN WEDEMAN, CNN INTERNATIONAL CORRESONDENT: Well, for Palestinians for quite some time, it's been the question of the Israeli settlements in the West Bank and east Jerusalem. We've seen settler population in those two areas grow to about half a million. And of course, they're living on land the Palestinians are hoping will become part of their state, and therefore, that is the main issue.

But as Paula rightly mentioned, security has become a big issue. We saw certainly today in Washington. Both prime minister Benjamin Netanyahu and the Palestinian president, Mahmoud Abbas, stressing on it.

And of course, these attacks that took place on Tuesday and Wednesday have put the Palestinians on the defensive again. We heard the Palestinian president stressing about how much they have done, the Palestinian Authority has done, to bolster security in the areas to guarantee to Israel that there won't be more attacks on Israel.

So, even though until now one of the reasons for the delay in the resumption of the direct talks was the Israeli settlements on the West Bank and in east Jerusalem. Once again, it's security, and in a sense, the ball is in the Palestinian court to prove to Israelis that they can secure, they can guarantee security as the process goes forward. Tony?

HARRIS: All right. Ben Wedeman and Paula Hancocks for us. Thank you, both.

When we come back we'll learn more about the production platform that exploded just over an hour-and-a-half ago in the Gulf of Mexico.

We're back in a moment. You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: OK. Let's see if we can get you the latest information and then move this story ahead a little bit. We're talking about this production platform explosion in the Gulf of Mexico. About 102 miles now just south of Vermilion Bay. I think we've got some mapping that will help you see this. There it is a little more clearly here, in the Terrebonne Bay region. Thirteen people on board the rig at the time of the explosion and fire. All accounted for. One with injuries. We don't know the extent of the injuries to the one individual who was on that platform at the time. "Wall Street Journal" reporter Ben Casselman is on the line with us.

And, Ben, help us understand a little bit more about the company that owned this platform. What do you know about Mariner Energy?

BEN CASSELMAN, "THE WALL STREET JOURNAL" (via telephone): Well, Mariner Energy is relatively small as far as offshore operators go. You get lots of these small companies that operate onshore, relatively few of them offshore. Interesting fact about Mariner is it's in the process of being acquired by a somewhat larger company, Apache Corps. That deal has not yet been completed. And we'll see what impact this might have.

HARRIS: And what is this rig that we're talking about? I mean we've got information that it is -- it has the capability of being a drilling rig, but it's also a production platform. Can you help us sort out at least what this particular operation, this platform was functioning as at the time of this explosion and fire?

CASSELMAN: Yes. We're still getting details on that. But from what we understand right now, it is a so-called fixed platform. That means it doesn't move around. It's anchored to the sea floor in just about 300 feet of water. And it primarily is a production platform. So oil and gas, and it seems in this case probably mostly gas, comes into that platform. As far as we understand, there are not people on it on a day-to-day basis. They just come on when there's a job that needs doing. What we don't know yet is what kind of operation might have been going on, on board that rig in this particular case.

HARRIS: OK. Does it sound like -- and we had a professor on from Texas A&M earlier in the hour. His speculation was that it sounded like a natural gas explosion. If you had to speculate at this time, and I know you don't want to, does it sound like a natural gas explosion to you?

CASSELMAN: Our understanding is it was a natural gas production platform. Whether it was the natural gas that exploded or whether there could have been a fire of some other kind on the rig, I think we just don't know yet.

HARRIS: Yes. OK, Ben.

Ben Casselman is the -- is a reporter for "The Wall Street Journal."

Ben, thanks for your time. Appreciate it.

CASSELMAN: Thanks for having me.

HARRIS: CNN is, of course, your hurricane headquarters. And we want to get you up to the minute information on Hurricane Earl right now. Reynolds Wolf is tracking the big storm for you at the hurricane headquarters.

And, boy, if you would, just give us the latest that you have. Throw everything at it.

REYNOLDS WOLF, AMS METEOROLOGIST: It's still a powerhouse. I mean there are some good signs, and we're going to get to those in just due course.

But right now, Tony, what we do know is this is a category four storm. It's the strongest one on the planet. Winds are up to 140, gusts up to 165 miles per hour. And a couple of things that we're seeing right now actually look pretty favorable for this thing to actually weaken, and that's certainly some good news.

One thing we're seeing, if you look at the last couple of frames of this, you'll see a little bit of drier air that's trying just to invade -- getting a little bit closer to the eye. And the reason why that's important is because these storms have a structure very similar to a wheel. So let's say you have the wheel. You've got the center of the wheel. And, of course, you've got your spokes. Well, having the dry air coming in is almost like knocking out a few of the spokes. It actually breaks up some of the structure of the storm itself, thus it can actually help weaken the storm. And that's what we want to have happen.

That is exactly what the National Hurricane Center is forecasting is that the storm is expected to weaken. The latest forecast from the National Hurricane Center shows that it's going to -- well, the storm is expected to veer it's way to the north, then to the northeast. Dropping in intensity to a category three storm as we get into early Friday morning. By Friday evening, a category two storm moving into an area of slightly colder water, then veering right past Boston farther to the north, up off the coast of Maine as a category one into, let's see, Saturday morning.

But the thing to remember is, Tony, this is a very big storm. Very wide.

HARRIS: Yes.

WOLF: So if it were to pass just on the outer banks, the way it's forecast now, the eye of this, the center, is expected to be within 60 miles of the outer banks of North Carolina. With tropical storm winds extending some 200 miles away from the center. With hurricane-force winds extending 90 miles from the center. What that means, the outer banks is going to get blasted by some of the strongest winds.

And already, take a look at what we've got. Tropical storm watches that are in effect, hurricane warnings in effect. You see them extending as far south as the Carolina coast, as far north as Maine. What we're going to see at a minimum would be wind gusts off the Carolina coast of 80 miles per hour, perhaps strong. Waves anywhere from 25 to 30 feet by the evening hours. And then the storm surge at two to three feet.

But something else to mention, too, Tony, is, keep in mind, you don't even have to be right near the storm to be affected. I can tell you that off the Florida coastline, they're going to be dealing with some very strong rip currents all the way up and down the eastern seaboard. So it's going to affect everyone.

HARRIS: OK. Everybody's got to be careful.

WOLF: Absolutely.

HARRIS: Do we have a -- do we have Rob's shot up, available to us? If we do -- if we do let's -- there it is.

WOLF: Yes.

HARRIS: There it is. That's what's happening now.

WOLF: Very deceiving, though. I mean it looks OK. And just an hour or so ago we had plenty of sunshine, blue skies. It looked great.

HARRIS: Right.

WOLF: But you get out in that water, you hit a bad area where that water is being pushed up against the coastline, the rip currents are going to be enhanced.

HARRIS: That doesn't look calm to me. And what we know based on your forecast as to what's coming, well, yes, this is the leading edge.

WOLF: It's going to be a lot rougher.

HARRIS: That looks pretty --

WOLF: Absolutely.

HARRIS: That's a significant chop, at least in my eyes right now.

OK, Reynolds, appreciate it. Thank you.

WOLF: You bet.

HARRIS: Riding out the storm -- OK. OK. OK. We do.

David Reed is on the line with us. And, David, I understand, was a witness to the production platform explosion and fire that we've been telling you about for the last hour or so in the Gulf of Mexico.

David, good to talk to you. How are you, first of all? Are you OK?

DAVID REED, PARAMEDIC ON NEIGHBORING RIG (via telephone): Doing fantastic, sir.

HARRIS: David, if you would, describe what you saw. REED: Basically, we did not see it actually explode, but we did see the plume of smoke immediately after the fire, after it did explode. Shortly thereafter, we started hearing chatter over all the radio frequencies. And they were calling for all area boats and helicopters to come and assist in the rescue.

We did not know how many people were in the water (INAUDIBLE) at that point. It was probably about 20 or 30 minutes later they reported that there were 13 people in the water. It took approximately an hour for helicopters to get here. And it's my understanding that all 13 people have been pulled from the water. And they have reported that there were no injuries. I've heard this directly from the helicopters talking to each other.

HARRIS: David, where were you? What was your vantage point on this?

REED: I am on a jacked-up oil rig approximately 14 miles from the platform that blew up.

HARRIS: OK. I think, Jen Cook (ph), is this a picture -- David, did you -- did you snap this picture that we're looking at right now?

REED: Yes, I did, sir.

HARRIS: OK. And I'm trying to make it out. I can't see much in the photograph. Am I missing something? Help me here, everyone, if I -- what did you -- what did you see?

REED: That particular -- that particular picture -- that particular picture in the very center is probably about 20 to 30 minutes after it actually blew up. So some of the other pictures that I showed -- or I sent in actually showed the plume of smoke going up.

HARRIS: OK. We'll get those pictures produced and on the air as quickly as possible. Could you believe your eyes? I mean given what we know about the explosion of the Deepwater Horizon in April, could you believe that you were looking at a -- that you were actually looking at another fire from a production platform in the Gulf of Mexico? Could you believe it?

REED: Actually, no. I could tell you that having worked in the Gulf of Mexico for six years, it's actually very safe out here. Safety is of upmost concern. And the fact that this has happened again so soon after the, you know, the Deepwater Horizon is -- is surprising. It's very surprising.

HARRIS: Well the good news here is that, as you mentioned, 13 workers were on that rig. They were all, at some point, in the water. All are accounted for. All but -- all but one absolutely fine. One person with some injuries. We don't know the extent of the injuries. But a lot of Coast Guard assets are on that location now at the scene. More assets, we understand, are on the way.

David, we appreciate it. Thanks for your time and thanks for the photographs.

REED: Thanks very much, Tony.

HARRIS: We will take a break and we're back in a moment. You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Let's see if we can wrap this hour and get you to Ali Velshi in New York in just a couple of minutes.

Let's see the split. Can we see the split of the two big stories we've been following for you certainly in the last two hours of the CNN NEWSROOM.

First of all, we have got the story of the production platform that exploded. An explosion and fire in the Gulf of Mexico on this production platform about an hour and a half ago now. Thirteen workers were on the rig at the time. And we understand they are all accounted for, one with injuries. We don't know the extent of the injuries, but that worker is being taken out of the area to an area hospital for treatment of those injuries. OK, so that's a story we will continue to follow at the top of the hour with Ali Velshi.

And to the right of your screen you're seeing the image of a massive storm. That is Hurricane Earl, a category four storm right now, that is making its way, and you can see from the path here, right along the eastern seaboard. And we've been showing you these pictures, and maybe we can squeeze them in very quickly here, the live pictures from Kill Devil Hills, the outer banks of North Carolina. We don't have those pictures right now. But again, this is a very, very dangerous storm. Mandatory evacuation orders are in place for folks along the outer banks. And it's a serious storm that you need to keep an eye on and make your preparations for.

And then one more story here to get to. The Justice Departments had filed a lawsuit against Sheriff Joe Arpaio. And he is the sheriff of Maricopa County, Arizona. It seems negotiations have failed to produce an agreement on the government's request for documents to investigate possible discriminations against Hispanics. Here is the sheriffs response to the filing of that lawsuit a short time ago.

(BEGIN VIDEO CLIP)

SHERIFF JOE ARPAIO, MARICOPA COUNTY, ARIZONA: It's sad. We just met with these people in Washington. We wrote letters. They have hundreds and thousands of our reports. Hundreds and thousands. And we thought we were getting along fine. Then I hear they're suing for the documents. What is this?

(END VIDEO CLIP)

HARRIS: OK. So a lot of news in the last couple of hours of CNN NEWSROOM. We're going to give you a fresh treatment on all of those top stories with Ali Velshi at the top of the hour.

As a matter of fact, let's get there now. CNN NEWSROOM continues right now with Ali Velshi in New York City. Doctor, it's all yours.

ALI VELSHI, CNN ANCHOR: Man, you have had a busy couple of hours, Tony.