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CNN Live Saturday

Mold In New Orleans Could Cause Health Problems; Bombings in Bali Kill 39; Natural Gas Prices To Soar This Winter

Aired October 01, 2005 - 16:00   ET

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

GERRI WILLIS, CNN ANCHOR: Terror targets an island paradise. Two dozen people are dead in Bali following a string of attacks. We'll bring you the latest.
PETER VILES, CNN CORRESPONDENT: I'm Peter Viles in Burbank, California. We'll have the very latest on day four of the California wildfires.

WILLIS: And will staying warm this winter break your bank account? We'll explain why things aren't looking good for homeowners in the snow belt.

Hello, and welcome to CNN LIVE SATURDAY. I'm Gerri Willis. All that and more after this check of the headlines.

Now in the news, a deadly encounter between U.S. troops and Taliban militants in southern Afghanistan. U.S. military officials say one American soldier was killed, another wounded when militants attacked them with small arms and rocket propelled grenades. An Afghan soldier was also killed in the fighting.

And here is a new tropical depression in the Western Caribbean Sea, and it's prompting Mexican officials to issue tropical storm warnings for the Yucatan Peninsula. The storm system is about 100 miles southeast of Cozumel, Mexico. It could strengthen into a tropical storm before making landfall on the eastern Yucatan. That would be later today or tomorrow.

And a Russian Soyuz rocket is headed for the International Space Station, after successfully blasting off from Kazakhstan in Central Asia. The rocket is carrying a U.S. and Russian crew, and an American tourist. Millionaire businessman Gregory Olsen paid $20 million to join the mission. He is only the third tourist to travel into space.

It has happened again, almost three years to the day after bombs turned an Indonesian tourist paradise into a crime scene. More deadly blasts today. At least 24 have been killed on the island of Bali, and the explosions come after the U.S. and other countries warned of a high terrorist threat to foreigners in Indonesia. CNN's Andrew Stevens reports.

(BEGIN VIDEOTAPE)

ANDREW STEVENS, CNN CORRESPONDENT: For the second time in nearly three years, terrorists struck this tourist haven. Around 8:00 in the evening bombs exploded virtually simultaneously. The target, a beach front restaurant packed with western tourists and local Indonesians, in one of Bali's resort areas in Jimbaran Bay, and a busy shopping center, 30 kilometers away, in downtown Kuta, the shopping and entertainment hub of the island.

Police say the bomb appears to have gone off in this restaurant on the second floor of a three-story building. U.S. journalist Maria Bakkalapulo (ph) described the scene.

UNIDENTIFIED FEMALE: There was just a tremendous amount of glass all over the road. And whole building is completely mangled on the outside, even though the building is still standing.

STEVENS: The dead and the injured include foreign nationals. No one knows yet exactly how many, but the island attracts a wide range of overseas tourists, particularly from neighboring Australia.

Indonesia's president, Susilo Bambang Yudhoyono, immediately described as terrorist attacks.

PRES. SUSILO BAMBANG YUDHOYONO, INDONESIA (through translator): These were clearly acts of terrorism because the victims were indiscriminately chosen, and the targets were public areas. As president, and on behalf of the Republic of Indonesia, I strongly condemn these inhuman acts.

STEVENS: The blasts came just days ahead of the third anniversary of the twin nightclub bombings in Bali in 2002. Two hundred and two people died that night, 88 of them Australians.

The al Qaeda linked militant Islamic Juamers Linea (ph) was blamed for that attack, and the group, which is not outlawed in Indonesia, has been tied to two other bombings since then, the Marriott Hotel bombing in Indonesia's capital in 2003 and the blast outside the Australian Embassy in Jakarta last year. Those two attacks claimed 23 lives.

UNIDENTIFIED MALE: We have been on an extremely high state of alert. This has been almost a constant state of alert, enhanced, of course, if there is any specific threats. But, you know, I mean, there cannot be any misjudgment, in terms of whether or not we have been alert on this issue.

We had been very much on top of it, but as I said, you know, I mean, the very best preparations cannot guarantee 100 percent . The best preparations cannot guarantee a 100 percent success rate.

STEVENS: Security was increased in both Bali and Jakarta in July, after intelligence reports indicated that terrorists were planning to target Indonesia. Andrew Stevens, CNN, Hong Kong.

(END VIDEOTAPE)

WILLIS: And a man who saw the explosions will join us a little later in the show. His story coming up in less than 30 minutes.

It has been called the heartland of the Iraqi insurgency, and now the U.S. military is making the region the focus of a new offensive. Operation Iron Fist is underway in Anbar Province, in a town near the Syrian border. The aim, rooting out insurgents and stopping the infiltration of foreign fighters.

CNN's Jennifer Eccleston is embedded with U.S. troops.

(BEGIN AUDIO CLIP)

And it was very much a joint operation today. It involved some 1,000 people, all members of the armed forces including the Army, the Navy, but it was mostly a Marine operation. And apart from calling it Operation Iron Fist, they referred to it as a sweep and clean operation, that is sweeping into the city, going neighborhood by neighborhood, street by street, house by house and sweeping and cleaning it out of the insurgency.

And for the most part, it was a relatively calm day for the Marines and the Army and those other patrols that were involved. There was sporadic gunfire from insurgents. There were also a number of IEDs that had not detonated by those troops. But it really was quite a scene to see all these troops come into this very tiny village and overall get a receptive feel from the local residents.

(END AUDIO CLIP)

WILLIS: That was CNN's Jennifer Eccleston. Meanwhile, two more soldiers lost their lives in Iraq. One of them was killed earlier today in a roadside bombing in Baghdad. The other was killed in a mine blast north of Baghdad. The death toll for U.S. troops now totals 1,938.

The U.S. top commander in Iraq will be a guest of "CNN's LATE EDITION" tomorrow. General George Casey talks with Wolf Blitzer at a special time. You'll want to tune in at 11:00 a.m. Eastern, 8:00 Pacific.

Back in this country, it's a tale of two fires in California. A massive blaze that once threatened thousands of homes should be under control Monday. But a few miles to the east, a smaller fire continues to spread. CNN's Peter Viles is on the scene in Burbank. He joins us now live -- Peter.

PETER VILES, CNN CORRESPONDENT: Gerri, the big news here, the big story here today is the weather. We are not getting the powerful and dangerous hot Santa Ana winds. The breeze is rather cool. The temperature down a little bit. Ideal weather to fight the fire, and these firefighters are fighting it aggressively, hitting it very hard with air drops.

A couple of hours ago, when you stood here, you could see a lot of smoke and some flames. You can't see any flames, and we haven't seen flames in probably an hour-and-a-half and they're really hitting this fire really hard. It has burned about a thousand acres. Just for some perspective, that is an area a little bit larger than Central Park in New York City. Only 15 percent contained, and that is the thing that firefighters are worried about. About 70 homes have been evacuated, so it is not yet a massive evacuation. Now just to give you an idea how Californians are dealing with this and going on with their lives, there is a function hall up here on this bluff, and there have been weddings going on in that function hall, with the smoke from these fires behind them all day yesterday and all day today.

These are couples who decided they didn't want to postpone their wedding, even if there is a little smoke and a little fire in the background. So that tells you, I think, how Californians are dealing with the fire.

Now the other fire, the bigger one, in Topanga, very good news over there as the winds die down. That fire now, 40 percent contained although it did burn 24,000 acres. That is an area probably one-and- a-half times the size of the island of Manhattan, a pretty destructive fire, but, again, firefighters did a great job. Only one home was destroyed in that 24,000 acre blaze, and as you say, Gerri, they expect to have that fully under control, 100 percent contained some time on Monday -- Gerri.

WILLIS: Peter, thank you for that. That was CNN's Peter Viles.

With one third of New Orleans now reopened, more evacuees are returning home today. Some are going back just to pack up and move again. Others are vowing to stay. CNN's Chris Lawrence is standing by live in New Orleans to tell us the latest on the aftermath of Hurricane Katrina.

CHRIS LAWRENCE, CNN CORRESPONDENT: Gerri, it is really kind of a tale of two cities. Some parts of the city look like they are coming back strongly. Other parts look absolutely devastating and look like it could be months or even more than a year before they can come back.

This street is a good example. I mean, you can take a look behind me. You can see some of the damage to some of the buildings, some of the businesses that are still dark, boarded up windows. And then as you down the street, MaKenzie's (ph) is open, Kyoto's the Asian restaurant right next to is also open. So this block is a good microcosm of what's going on across the city.

When you take a look at areas like St. Bernard parish, especially, that area looks a lot like it did the day after the storm minus all the floodwaters. And the sheriff there is saying that probably less than one in four people have flood insurance, the area just devastated.

Then you go out to some of the other areas on the fringes, like Meterie (ph). You've got a Bed, Bath and Beyond that's opening up. You've got people shopping. You have got all these businesses that deal in flood damage and roofers, they're out working. And the area really seems to have a lot of life.

Now, Mayor Ray Nagin has -- imbarking on a very aggressive plan to try to get the city back on its feet. He's appointed a commission. And he is asking the federal government for three things. He wants a 50 percent income tax credit for people who are living and working here in the city of New Orleans. He also wants to put on the fast track, a plan to build a light rail system that would go from New Orleans to the Baton Rouge Airport. And he wants to also get cracking immediately on repairing some of the levees to get them up to snuff, to be able to withstand a category 3 storm. Once that is completed, he wants to immediately start work on getting them able to withstand a category 5 hurricane.

Now, the mayor is doing all of that, but a lot of folks here that we talk to say he wants to now bring people back into the city. But he is the one responsible for driving a lot of people away. We talked to a lot of people out here in New Orleans who say his exegerations early on, about how many were being raped or how many people were being shot, that there could be up to 10,000 people dead here in New Orleans, some say that drove out a lot of the young workers to other cities to find jobs. And now, they are very worried that a lot of those people will not come back -- Gerri.

WILLIS: CNN's Chris Lawrence, we thank you for that.

As we focus on the recovery and rebuilding in New Orleans, we want to know what you think should be done with the city. Log on to cnn.com/stories to share your thoughts and your ideas.

New Orleans's former mayor gets a firsthand look at Katrina's devastation. Up next, I'll speak with Mark Morial about what he found and what he thinks the city need to do now.

Plus, we'll explore the health risks left by Katrina. Our Dr. Bill Lloyd is in the house to bring us some answers.

And still to come, a love triangle from a penguins perspective. Why gender doesn't matter when it comes to these New Yorkers.

(COMMERCIAL BREAK)

WILLIS: Welcome back. We have more now on those bombings on the Indonesian resort island of Bali from a man who witnessed the explosion, and said the scene was of of utter chaos and carnage. Sean Mulcahy joins us now by telephone from Bali. Sean, thank you for coming back this hour. Tell us now about the scene that you are seeing at this moment.

SEAN MULCAHY, BOMBING EYEWITNESS: Well, the scene is -- it sounds a bit of a cliche, but it's one of an eeire calm, I suppose you'd say, around the sight of the blast, which is just in front of me. It's -- there's a lot of people sort of sitting around, and waiting for something. I am not sure what they are waiting for. I think the investigators are maye waiting for daylight to start the investigation.

But the streets are empty. I mean, at this time of morning on a Sunday morning after a Saturday night in the middle of the high season, certainly, in the past weeks have gone by that I've been here, you can expect traffic jams, night clubs crammed full of people. And it is like a ghost town.

WILLIS: Sean, did you go to enjoy yourself? Are you there on vacation? Why did you go? And tell our viewers about how you almost went into one of these restaurants that was blown up.

MULCAHY: I am out here, currently, handling the public relations for a young lady who is in prison out here, charged with possessing ecstacy, a model by the name of Michelle Lesley. Her lawyer, Ross Hill, is a colleague of mine, and I were planning a meal with another photographer friend of ours at the restaurant at Jim Baron.

WILLIS: So, you were there for work, essentially?

MULCAHY: Yes, I am here on a different matter. But if it weren't for the festival taking place in Bali tonight, in Kuta, Ross, myself, we would have almost certainly died in this blast in Jim Baron (ph), because we were due to be there.

WILLIS: Now, you described typically the goings on a night like the one we just had as the restaurants packed, the bars full. Certainly in the wake of the 2002 bombings we had seen confidence return. What do you think is going to happen now?

MULCAHY: Look, I think this is the final nail in the coffin. I think the Balinese people did an amazing job to recover and recoup themselves from the last attacks. And confidence, as you said, was just starting to build this particular season. You know, it was very difficult to get into any hotels, the villas are all full, the restaurants were full. It was enjoying the peek of season again.

And I just think that this is just one too many for a lot of people, especially Australians, I just think that they will give up on this place, no matter how cheap it is, and move on to safer places like Thailand. I feel sad for these people, because they certainly -- they don't want this sort of thing. And it affected them. They are the ones that lose from it.

WILLIS: Well Sean, we appreciate your being with us this hour. Thank you. And I hope you get off to a safer place.

MULCAHY: Thank you. Thank you very much.

WILLIS: The White House has issued a statement condemning those attacks in Bali. It says the U.S. expresses solidarity with the Indonesian government and is ready to assist in any way.

Katrina put the educational system on hold for hundreds of schools along the Gulf coast. Now, teachers are turning to other states for a temporary paycheck. We'll have one woman's story when CNN continues.

Plus, still to come, we are getting a better picture of Katrina's ripple effect on America's energy supply. What kind of financial can you expect? That story coming up at the bottom of the hour.

(COMMERCIAL BREAK) WILLIS: One of the many people returning for a look at New Orleans today is the city's former mayor, Mark Morial. Moreal now serves as president of the Urban League. He served New Orleans from 1994 to 2002. Thanks for being with us today.

MARK MORIAL, URBAN LEAGUE: Thanks for having me.

WILLIS: Let's talk a little bit about what you saw today and what your reaction was. Worse it worse than you expected? Better?

MORIAL: I would say that in some areas, it is worse than anything imagineable. Areas near the levee breech in Lower Nine looked like the Russian army, General Sherman and Hannibal went through there. There's just rubble, downed houses everywhere.

In other parts of Lower Nine, the houses are still standing, but there is evidence of significant water damage. And I think, what I come away from this believing is that the road back to New Orleans will be long, it's going to be hard, but the city can in fact rebuild.

WILLIS: You say the city can in fact rebuild. The current mayor, Ray Nagin, has come up with a commission he's appointed to do just that, including many specific items on their agenda including building a light rail system. What do you think of those ideas? And is that the right way to go?

MORIAL: I think the light rail system is an excellent idea. I think a rail system which has the capability of enhancing and helping people to evacuate is certainly something that's needed. And also strengthening the levee system. There are so many instances where levee breaks in fact, caused most of the damage. And I think that has got to be evaluated. But more importantly, a new and better levee system has to be built for Louisiana and for New Orleans.

I think the commission is a good idea, but I think Louisiana would be best served if there were one commission, not a city commission, not a city council commission and a state commission, but a single commission. And hopefully that all of these separate commissions that are working on rebuilding ideas will come together as quickly as possible.

It is important that there be a united front. I think those of us that work at the national level, I think people in Washington want to see a united front for Mississippi, a united front for Louisiana, a united front from East Texas when it comes to rebuild.

WILLIS: And yet it seems like it's been so difficult for the different arms of governmetn to work together in this case. What's the solution to that? How do you get everybody on the same page?

MORIAL: Well, I think that is where leadership comes in. And when leadership doesn't work together, it fails the people. And the rebuilding is going to be so essential. I am here in Louisiana on a fact-finding mission. I spend yesterday in Baton Ridge, today in New Orleans, and have talking to a wide variety of business leaders, some elected officials at the state level, some state legislators, and I think that people -- there is the desire for a united front. That has to got to come from the governor, it's got to come from the mayor, it has got to come from people across the board.

There is tremendous good will across the nation for the people of Louisnana, there has been great generosity. But the rebuilding is going to require, in order to marshal the public and private resources necessary, a plan needs to be quickly developed that is inclusive and a plan needs to be quickly developed that demonstrates a united front. So, I urge and hope that leaders will work in that regard.

WILLIS: Are you saying that there has been a leadership failure?

MORIAL: Well, I certainly believe that in the days immediately following Katrina's hit, many, many things went wrong. I think there were many, many failures at the city, the state and the federal level. And now, the important thing is that there is a united front.

There are some steps in that direction. But I think that what is so necessary is that the city and state governments quickly get on the same page. And in New Orleans, it isn't just the city, it is the region: St. Bernard Parish, St. Tammini Parish are sections of this great region that have also been affected.

So, we want to see that. I think some of the ideas that have advanced such as light rail, absolutely, improving the levee system, are very good ideas. But to get them down is going to require a unified front from all of the players here in Louisiana.

WILLIS: Well, we could go on. But we are out of time. Mark Morial, thanks so much for us -- speaking with us this afternoon.

MORIAL: We will come back.

Thank you.

WILLIS: With so many schools devastate in the Gulf region, it will be months before they reopen. Displaced teachers and principals are scattered across the country. Our Kathleen Koch tells us many are taking jobs where they can find them, until they can go home.

(BEGIN VIDEOTAPE)

KATHLEEN KOCH, CNN CORRESPONDENT (voice-over): Toppled desks, missing walls, soaked books: sad scenes that have left thousands of Gulf Coast teachers with no where to work. Hilda Thomas has taken a job in Maryland as English teacher coordinator at Oxenhill High School. She doesn't know what's happened to the New Orleans Junior High School where she was principal or where her teachers are.

HILDA THOMAS, DISPLACED EDUCATOR: I find myself each afternoon when I go home each afternoon, having to check the voicemail system and the phone to see whether or not a call has come in to say, Miss Thomas, I am here, and I am OK.

KOCH: 489 Louisiana schools remain closed, 226 in Mississippi.

UNIDENTIFIED FEMALE: The force of the water coming in, and rushing back out.

KOCH (on camera): Open classroom.

UNIDENTIFIED FEMALE: Definitely.

KOCH (voice-over): Unlike in New Orleans, Mississippi teachers are still getting paid, so more of them are staying in the area, anxious to begin the cleaning process.

FRANCES WEILER, PRINCIPAL, NORTH BAY ELEMENTARY: Their first thought is, oh, I must save all of those supplies I have worked for. But we have just really discouraged them from coming back.

KOCH: That, because many schools in both states are still not safe to return to.

UNIDENTIFIED MALE: Every dollar you donate goes directly for food, shelter and clothing.

KOCH: Teacher unions are running ads, and raising money for those impacted. They pray schools nationwide for hiring teaching who may have gotten out with nothing but the clothes they were wearing.

REG WEAVER, PRES. NATIONAL EDUCATION ASSOCIATION: Many of these states have kind of relaxed, or waived maybe some of the requirements and have taken these people in. And so, I believe that that is the humane thing to do. And we always need teachers. We always need teachers.

KOCH: Hilda Thomas is grateful for the support and outpouring of help she has gotten in Maryland. She's staying there, for now.

THOMAS: I will be here this school year. At the end of the school year, I don't -- I am not sure in terms of the future. It all depends upon how things are in New Orleans.

KOCH: Kathleen Koch, CNN ,Washington.

(COMMERCIAL BREAK)

WILLIS: Time for a check of what is making news this hour, firefighters continue to battle several ferocious fires in California. One blaze has scorched at least 1,000 acres in Burbank, it is 15 percent contained, but it still threatens soem 60 homes. Firefighters suspect to fully contain a 24,000 acre fire northwest of Los Angeles by Monday.

And a powerful typhoon has killed at least 52 in Vietnam, 12 people are missing. The storms heavy rains triggered flash floods that washed away homes. The typhoon also killed 51 people in China, the Phillipines and Thailand.

What could be an even more powerful storm is headed to Taiwan. That typhoon is expected to slam into the island within hours, with torrential rains. And at least 24 people are dead after a spring of bombings in Bali, Indonesia. The explosions targeting popular tourist areas. 95 people were injured. Indonesia's president blames the attack on terrorists.

Well, in parts of the country, it is sweater weather. And with the cost of energy rising, we may find ourselves dressing a bit more warmly than usual indoors, that is. We already know about the price of gasoline, now, Ali Velshi tells us there is another energy worry on the way.

(BEGIN VIDEOTAPE)

ALI VELSHI, CNN CORRESPODNENT (on camera): Gasoline prices are up about a dollar in the last year, the average American buys about 500 gallons of gas a year. So, if you use some real back of the envelope map, we can say that gasoline is going to cost the average American about $500 more this year than it did last year.

Now, this is a gallon of home heating oil. It gets a lot of attention, but only about eight million American homes use it. Seven times as many, more than 60 million American homes, use natural gas to heat and air condition.

Now, natural gas is drilled, it's process and it's transported by pipeline across the country. Last winter, a thousand cubic feet of natural gas -- that's how it's sold -- sold for $10. This year, 1,00 cubic feet of natural gas is expected to cost an average of $16 or more. That's at least a 60 percent increase.

Now add to that, concerns about a colder winter than last year in Ohio, Indiana, Michigan, Wisconsin, the Midwestern states that use a lot of natural gas. Well, folks living in those states could get hit harder. The Energy Department says, between 69 and 77 percent higher than last year.

Natural gas traders are getting a little on edge about something called a tropical wave in the Caribbean Sea, fears are that it could pick up some steam and head for the Gulf, where a quarter of the country's natural gas production is located. And that caused another 10 percent jump in natural gas price this week. For the average American who uses natural gas, this is giong to hit hard.

Now, America's natural gas producers say the answer for homeowners is to plan for a cooler house this winter.

SKIP HORVATH, NATIONAL GAS SUPPLY ASSOCIATION: Lowering your thermostates two degrees or so over the winter, will help. It requires less energy, less natural gas to heat your home. And that saves on some supply. That will then put downward pressure on natural gas prices. So, it is really not a question of reliability, it's a question of keeping the prices as moderate as we can. And that will help.

VELSHI: On Monday, the Department of Energy will give us some tips on how to save energy this winter. And if you don't heat or cool with natural gas, you're still going to feel the pinch, because every time you turn on an electrical switch, you might be paying the cost of natural gas. 17 percent of all the electrical power generated in this country if fueled by natural gas.

I'm Ali Velshi in New York.

(END VIDEOTAPE)

WILLIS: Well, how are energy companies reacting to Katrina's destruction? I'll talk with an industry expert, that's up next.

(COMMERCIAL BREAK)

WILLIS: Let's check in now on the state of the energy industry in the aftermath of Hurricanes Katrina and Rita. Joining us now from Houston, Karen Broyles-Boman. She's editor of Offshore International Newsletter, which is publicshed by ODS Petro Data.

Thanks for being with us today, Karen. We appreciate it.

KAREN BROYLES-BOMAN, OFFSHORE INTERNATIONAL NEWSLETTER: Well, thanks for inviting me on the show.

WILLIS: Let's talk a litle bit about where we are now in the terms of those rigs and the damage to them.

I know after Rita the initial reaction was, hey, maybe we got a little less damage than anticipated. But you have had a little time now to really think this through about the damage. What are you seeing?

BROYLES-BOMAN: Well, looking back on past storms and other events in the industry, I would have to say, the effects of these two storms on the drilling fleet and infrastructure are probably the most catastrophic that I have seen. And I think the industry, right now, is just really now beginning to access the damage. You have to remember, there was no time to begin a thorough assessment after Katrina, because Rita came along so closely on her heels.

WILLIS: Kare, how long is it going to take to set this stuff right? I mean, are we talking weeks? Months? Years?

BROYLES-BOMAN: There's no easy answer. I can tell you looking back when Hurricane Ivan passed through the Gulf of Mexico last year, and that was no small storm in itself, but really, when you look at that damage, it pales in comparison to Rita and Katrina. And the effects of Hurricane Ivan on the U.S. Gulf of Mexico energy arena were felt for some months, some would even say that production has not yet returned to pre-Ivan levels. So, there's really no easy answer.

WILLIS: Wow.

BROYLES-BOMAN: Significant damage to rigs, subsea damage. And not only that, you have the onshore bases -- when Hurricane Katrina struck Louisiana, a lot of bases that serve the drilling rigs, obviously, the flies and man power have to come from somewhere. A lot of those places were flooded. So you had supply chain disruptions, refineries, as well. And that could still be an issue.

WILLIS: So, onshore, offshore rigs, pipelines damaged, how it this going to affect gas prices?

BROYLES-BOMAN: Well, our company is more in the business of follow a market intelligence for about off shore oil and gas. But I can tell you, it will be safe to assume there will be an impact. What that number will be, or how high prices will go, I can't tell you.

WILLIS: All right. Well, let's talk a little more about the damage that has been done this this region. Of course, there is not just the damage the industry is sustaining, they also provide a lot of jobs in the area. It seems like it will be a broader economic impact.

BROYLES-BOMAN: I think it will. And you have to remember, a lot of the people who work on these off-shore rigs of course obviously live in the areas most severely affected by the storm. They have -- many of them lost homes, some even probably lost family members.

So -- I mean, definitely, I don't have any specific numbers, but defeinitely manpower is affected. And just -- as these people try to rebuild their lives, will still, will they go to other parts of the country?

WILLIS: We just don't know, do we?

BROYLES-BOMAN: No. It's just too early to tell.

WILLIS: Let's talk about natural gas for just a second. You know, obviously, gas, natural gas is a big domino we are talking about, in terms of everything being related, as far as consumers are concerned. What do you think the impact is there?

BROYLES-BOMAN: Well, I think it'll be significantly impacted. Unlike oil, which can be easily imported, natural gas -- the U.S. is very dependent on the supply that comes from the Gulf of Mexico. We don't have the (INAUDIBLE) terminal capacity to import enough to feed that demand.

The only real -- other realistic source I guess we can get additional gas from, woulc be Canada. But they also consume a lot of gas themselves. So, it's not like you can just go turn on the facet and get the gas to meet the demands. Definitely, not in the short term.

So, I expect to see 14, 16 dollar cubic feet gas. I don't know how high it will go. But again, we will definitely feel an impact.

WILLIS: Well, not good news for consumers, especially since it is supposed to be a colder than normal winter.

BROYLES-BOMAN: Exactly.

WILLIS: Karen Broyles-Boman, thank you so much much for being with us today.

BROYLES-BOMAN: Thank you for having me on the show.

WILLIS: This just in, we have new numbers on that attack in Bali, 36 now, the death toll. That number has been increased. 103 people injured. Again, this is new news coming out on these Bali blasts that injured tourists, some of them westerners, in Bali, in Thailand (sic). 36 people now dead, 103 injured in those tragic explosions.

We will be back in just a minute with more.

(COMMERCIAL BREAK)

WILLIS: After the flood waters of Katrina and Rita, many homes in New Orleans now have a new enemy: mold. It;s crawling up walls, eating away ceilings and adding to the putrid stench of debris.

CNN's Chris Lawrence has more on soggy homes and buildings that are a breeding ground for these spores.

(BEGIN VIDEOTAPE)

LAWRENCE, (voice over): Jim Landis is getting his first look at his mother's apartment.

JIM LANDIS, RESIDENT'S SON: Not bad. I expected a whole lot worse than this.

LAWRENCE: Her room at the nursing home has mold covering the sofa, growing out of the ceiling.

LANDIS: Well, the sofa is gone. But the pictures and, you know, things she's had a long time are the important stuff.

LAWRENCE: That wasn't that bad but some of these units are so much worse. This is the apartment of John Gish (ph). He's 90-years- old. You can still see his walker sitting right here on the floor. Right underneath where that water just completely soaked through the roof, collapsed the seal ceiling and there is mold everywhere in his apartment. Literally it's not a matter of trying to find a place in here where there is mold, but finding a place where there is no mold. From the walls, from the back to the front of this place, it is completely covered.

FRANK RABITO, M.D., INFECTIOUS DISEASE SPECIALIST: The mold could end up causing a significant medical problem for them.

LAWRENCE: Dr. Frank Rabito says even mild forms of mold can cause chronic sinus and respiratory problems.

RABITO: As we get older, our immune systems tend to fall apart. And as a result, becomes susceptible to infections.

MIKE CALHOUN, OWNER, PRATT STANTON MANOR: When I walked in and saw the rain pouring down I said, oh God, this is it.

LAWRENCE: Mike Calhoun owns the nursing home. Says the roof's gone on one side of the building. The apartments will have to be gutted. The cleanup crew Calhoun hired wouldn't even walk through the door without full hazmat suits. Mold is saturating the ceiling, which has to be ripped out and replaced to protect elderly residents who want to move back.

CALHOUN: That's why we wouldn't let anybody come back until we're sure it's safe.

LAWRENCE, (on camera): Calhoun told me, his residents are scattered all over the country with friends and family from New Mexico to New Jersey. Some of them have already started to call and ask him when they can come home. First, he's got to gut and replace half that building, then the city inspectors have to come in and sign off before he gets the authorization to reopen.

Chris Lawrence, CNN, New Orleans.

(END VIDEOTAPE)

WILLIS: All right. Mold is not something that's going to go away easily. The situations in New Orleans and surrounding areas could create significant health risks for a whole new generation.

We are bringing in Dr. Bill Lloyd in Sacramento, California to talk a little bit about these health risks. Doctor, tell us, first of all, is there anything special we should know about the mold in New Orleans?

DR. BILL LLOYD, UC DAVIS: Well, mold is going to be the legacy of Hurricane Katrina, Gerri. Mold is a fungus, and anyone who has had a damp shower or a loaf of bread that's been around for five days knows what we are talking about. But in this case, as that recent report just showed, the mold is permeating every structure in the house.

If it is wet, it has to go. If you leave the mold, just like they said, there is going to be serious health problems.

You know, Gerri, the problems in New Orleans were described 30 years ago, New Orleans was the first city in the country to report mold problems as a possible health issue.

WILLIS: And of course, as we know, these kind of problems are all over the country now. Mold is a very big issue, not just for health concerns, but if you want to clean it up, you can't even get your homeowners' insurance to pay. Tell me what are the health risks associated with mold?

LLOYD: There's three big groups we need to think about, people who are already asthmatic, have a severe allergy history. Being exposed to a lot of mold, and in New Orleans it's in September and October, are going to be at risk for asthma. They used to call it New Orleans asthma.

Next, people with known sinus and breathing problems, people with emphysema, smokers and other and breathing problems, they too are going to be at risk.

And then the biggest risk of all, are for folks who are amenocompromised, because that mold not only gets in the walls, but it gets in the ducts and the ventilation systems. So when hospitals and nursing homes, people who are cancer patients, transplant patients, diabetics o people with HIV, are going to be prone to the mold spores actually getting into their blood stream, and making them very, very sick.

WILLIS: And it's so tough to get rid of, as you point out. What can homeowners do if they have mold?

LLOYD: First, a good inspection. Whether you are living in the New Orleans area or anywhere around the country, take a look around your house. And if you have damp areas, if materials are wet, you've got to get rid of them. There is no way you can dry it out sufficiently, to get inside that dry wall to eliminate the mold. So, you have to gut it out and gut it out.

Next, you want to dry out the area. And this is the problem in New Orleans, people who are just a bit to aggressive are trying to move back in, cut out the dry wall and get on with their lives. No. They have to wait for the whole area to dry out, or they'll just be reinviting the mold to come back in.

Forget about the home test kits, get yourself a professional to find out where the mold problems are in your house. Gerri, here's a vital tip, if you smell it, it's there. If you smell it, the mold is there.

WILLIS: Well, some very excellent advice.

Anything you can tell us, though, more specifically about reactions people might have to this mold? What are the tell-tale things that a person is going to feel, sense, if they are having a bad reaction?

LLOYD: Sure. Like any allergy, you are going to feel itchy, itchy around the eyes, itchy around the mouth, you may have difficulty swallowing or shortness of breath. You may develop a rash that you never had before.

Doctors tell us that most of the people in the New Orleans areas that are prone to problems are going to have the same problems when they move back in. It is not like all of a sudden you are going to have problems with mold.

For most people, the mold represents an allergy, just like poison ivy. Not so much of an infection, like we think about bacteria and viruses. So, people who are exposed to the molds that already have an allergic proclivity or a sensitivity, are going to have those problems: shortness of breath, itching, watery eyes, sinus congestion, breathing problems, very likely to be related to chronic mold exposer.

WILLIS: Best advice, get out and stay out. Dr. Bill Lloyd, thank you for the help today. LLOYD: We will talk again soon.

WILLIS: The story of Silo and Roy is straight ahead. It's a story of animal attraction between members of the same sex. A very public break up. And, oh yeah, don't forget about their adopted daughter. Jeanne Moos has this love story gone wrong. That's up next.

(COMMERCIAL BREAK)

WILLIS: Welcome back. Carol lin is here with a preview of what's to come. What is on tap for 6:00?

CAROL LIN, CNN ANCHOR: Well, I have ave very ambitious executive producer, so we have a lot to cover.

WILLIS: Good for you.

LIN: We are going to be following up on the breaking news out of Bali, and my guest tonight says that he knows -- he has a very good feeling about who is responsible for this, and yet it's a man who is behind bars. So, if he is responsible, how did he implement it.

Also, typhoon, category 4 -- equal to a category 4 hurricane right here in the United States is barrelling towards Taiwan. Our Dave Hennin is building a model to show us what impact of something like that might be on that Asian country.

And in the story of a marine reserve unit who just returned home, they have been seven months out on the battlefield, and these men and women who are school teachers, and firefighters, are coming back to what is a normal life. But how normal is it going to be with them?

And have you seen the new show with Geena Davis, "Commander In Chief," a woman as president?

WILLIS: I've hard about it, I've read about it, but I have not seen it.

LIN: Well, I couldn't resist. I'm interviewing Gloria -- Gloria Steinam, all right? One of the founders of the feminist movement about what it takes for a 20-year-old woman out there right now who maybe wants to be president one day and where sexuality plays a role in the workplace now.

So, you know, it is different for young women now.

WILLIS: Absolutely.

LIN: In the workplace, and how they express themselves. And it's really interesting to hear from her on the subject.

WILLIS: Well, you do have a jam-packed show.

LIN: Yes.

WILLIS: Thank you, Carol.

Life in the spotlight can be hard on celebrity couples, especially if they are same sex. Take the relationship of Silo and Roy. Now, these two Central Park Zoo penguins have called it quits. Now, one has gone straight. Go figure. Our Jeanne Moos has this story of animal attraction.

(BEGIN VIDEOTAPE)

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice over): There's nothing like sexual orientation to touch off a feeding frenzy of gossip.

UNIDENTIFIED FEMALE: They were really, like, I guess, boyfriend and boyfriend.

MOOS: But at the Central Park Zoo?

UNIDENTIFIED FEMALE: They were getting tangled (ph). They were happy.

MOOS: Maybe you've heard of Silo and Roy, two males. They were together for six years, building nests, trying to copulate. But then...

REGIS PHILBIN, TALK SHOW HOST: Silo has left Roy.

KELLY RIPA, TALK SHOW HOST: Ah!

MOOS: Not only did Silo and Roy split, Silo eventually went straight with a chick named Scrappy.

(on camera): Is Scrappy exceptionally attractive or anything?

UNIDENTIFIED MALE: She's a cute bird, like they all are.

RIPA: That little home wrecker.

MOOS (voice over): But if you think penguins can get snippy, you should see the press. Ever since the hit documentary "March of the Penguins" came out, French kissing penguin style, traditionalists have praised the birds for their devotion to monogamy and child rearing, to which gay blogger Andrew Sullivan wrote, "When they're not gay, these birds have as many spouses as Larry King."

Sorry, Larry.

"The New York Post" came up with four reasons Silo could have gone straight. Number one: the zoo doesn't offer penguins domestic partner health benefits.

The conservative Web site Focus on the Family was gleeful: "Silo Rains on the Penguin Pride Parade."

(on camera): So we're not going to see Roy and Silo in the, like, gay pride parade or anything here?

UNIDENTIFIED MALE: Well, you know, they would have to be in a very climate-controlled situation.

MOOS (voice over): A 34-degree parade. We humans can't tell male penguins from females. It takes a blood test. As for the penguins...

(on camera): You're sure they know the boys from the girls?

UNIDENTIFIED MALE: Yes. Yes.

MOOS (voice over): At this German zoo, there were so many same- sex penguin pairs that the zoo brought in females from Sweden to try to increase breeding, upsetting those worried that the zoo was trying to change the penguins' preferences. But wait. The saga of Silo and Roy isn't over.

ROB GRAMAZY, SENIOR KEEPER, POLAR BIRDS: In '99, we found them incubating a large rock.

MOOS: So keepers gave them a real egg to incubate. And Tango was born. She inspired a kids' book for being a penguin with two daddies. And who is Tango dancing with these days?

GRAMAZY: The last two years, she's been paired up with another female.

MOOS (on camera): What's going on? What do you guys have in the water here?

KELLY YOUNGS-SCHMITT, ZOO VISITOR: Oh, we didn't hear that part of it. So the baby was a little confused, too, maybe, because she had two daddies. We say it doesn't matter.

MOOS: OK.

YOUNGS-SCHMITT: It's OK.

UNIDENTIFIED MALE: As long as it's not humans.

MOOS (voice over): "As long as it's not humans," he said.

YOUNGS-SCHMITT: No, no, no. It's OK for humans if that's their preference. But it's not your preference, right?

MOOS: Don't ask, don't tell.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

WILLIS: That was Jeanne Moos.

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