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Lee Boyd Malvo Testifies Against Mentor in Sniper Trial; Airlines Expecting Busy Summer; Hurricanes and Big Oil

Aired May 23, 2006 - 15:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: One sniper turns against another -- a courtroom drama today in Maryland three-and-a-half years after a shooting spree that terrorized millions of people. In court, on the stand, Lee Boyd Malvo points the finger at his mentor, John Allen Muhammad.
CNN's Kathleen Koch was there.

(BEGIN VIDEOTAPE)

KATHLEEN KOCH, CNN CORRESPONDENT: It is the most dramatic day of testimony since John Allen Muhammad and Lee Boyd Malvo were arrested back in 2002 for the sniper shootings in Maryland, Virginia and Washington, D.C. Of course, John Allen Muhammad is on trial right now here in Montgomery County Circuit Court, acting as his own attorney.

And this was the first time that these two men have been together in the courtroom since Muhammad was on trial in the fall of 2003 in Virginia. And then Malvo didn't speak. He appeared only for identification purposes, but he had plenty to say today.

And one of the most disturbing items was, he said that the two men actually intended to terrorize the region for a whole month, carrying out six murders every single day, and then they had a phase two plan, that they would then use improvised explosives backed with ball bearings and nails to attack schools and buses and children's hospitals, in order to create what he said was -- quote -- "much more damage."

He very chillingly and methodically described how they carried out the murders in Montgomery County, Maryland, with really military- like precision. Malvo described how he would scout out the locations, make sure there were no surveillance cameras, very few witnesses, quick, easy escape routes.

He said it was Muhammad who hid in the trunk of their Caprice and who did the shootings. And he said, over and over again, what he would tell him is -- quote -- "I told him he had to go, and he took the shot."

There were family members of many of the murdered victims in the courtroom today. They had a very difficult time listening to the calm description of how their loved ones were murdered. Perhaps the most dramatic testimony could come this afternoon, though, when John Allen Muhammad has his opportunity to question Malvo.

Kathleen Koch, CNN, Montgomery County, Maryland.

(END VIDEOTAPE)

PHILLIPS: Out of jail and staying put -- the latest suspect in the disappearance of Natalee Holloway will not be going back to Aruba for more questioning. In fact, 18-year-old Guido Wever has been set free. His lawyer says there is not enough evidence.

Wever was working at an Aruban casino a year ago when Holloway vanished, the last night of her trip there. Despite numerous searches and 10 suspects questioned, Aruba police seem no closer to finding out what happened to her.

A waiting game for Ken Lay and Jeffrey Skilling. It's day four of deliberations in the fraud and conspiracy case against Enron's founder and its one-time chief executive. Lay and Skilling are accused of lying to investigators and Enron employees as the company's finances crumbled.

Lay is also on trial before a different judge on fraud charges related to his personal banking. It involved $75 million in loans from three banks and a promise not to use the money to buy stocks.

If last year's hurricanes proved anything, it's that New Orleans and other at-risk areas need a much better plan for clearing out. And that's the reason for a hurricane drill and mock evacuation under way today and tomorrow in New Orleans and Baton Rouge.

Our Susan Roesgen is on the phone to tell us how it is going.

Now, Susan, as we heard a couple hours ago, it -- it was running late, which is sort of Nagin's style. Is it moving along now?

(CROSSTALK)

SUSAN ROESGEN, CNN GULF COAST CORRESPONDENT: Well, I think it's sort of New Orleans' style, Kyra, with -- things run a little bit more slowly down here.

But I -- I can't tell you that that was a problem with the drill. I mean, that was a -- a glitch, perhaps, in the communication to the media. And you know, antsy reporters want to get going right away. And, so, the media didn't really get on top of what was happening right away.

But the drill seems to be going pretty smoothly. The -- the scenario the city has set up for this drill is that a Category 3 hurricane, like Hurricane Katrina, is 42 hours away from hitting the city. How will the city get people out?

This drill is using about 80 volunteers who are playing the role of evacuees. They are taken by city buses to the New Orleans Convention Center. And, there, they give their names, Kyra, and addresses and other information to city workers, who then put all that information into a computer database. And, then, from there, these evacuees would, in a real deal, be bussed to shelters away from the city.

What we have seen today is very orderly, a very smooth operation, but, of course, Kyra, this is just a test, with just 80 people pretending to be evacuees. In the chaos and panic of a real hurricane bearing down on New Orleans, with an estimated 15,000 people who would have to get out, a real evacuation would probably look a lot less calm -- Kyra.

PHILLIPS: Now, what about communications? That was one of the biggest disasters that we saw there in New Orleans. Police were not able to coordinate and talk with each other among all the other agencies, even with the mayor, etcetera. Are they practicing communications and how they would talk among all agencies?

ROESGEN: Yes.

That's something that they are going to test tomorrow. That's certainly a key part. They -- they lost cell phones. They lost land lines. Everything was -- was down. They didn't have the satellite radios. They were really in trouble. So, that's something they are going to test tomorrow.

Today -- something that they are testing today that I find interesting, Kyra, is that when these evacuees go to the Convention Center, they are given wristbands. And the wristbands have a bar code. It's sort of like a grocery store checkout scanner.

Those bar codes, then, on those wristbands stay with each evacuee wherever that person might go. So, what we had in the last hurricane, of course, that was so tough for so many people, is people were separated from their families. They didn't know where people wound up. There was no way to reach them.

Using this sort of bar code on these wristbands, the city hopes to be able to have a way to let family members know where other family members are.

PHILLIPS: All right. We will continue to talk more about this today. Just today and tomorrow; is that right, Susan?

ROESGEN: A two-day drill, you got it.

PHILLIPS: Great. We will talk again. Thanks, Susie.

Well, remember what happened to gas prices after Hurricane Katrina? Gulf oil production went down and prices shot up. And with gas once again near $3 a gallon and hurricane season still ahead of us, protecting those giant rigs is a top priority.

CNN's Randi Kaye saw for herself in a story you may have seen on "ANDERSON COOPER 360."

(BEGIN VIDEOTAPE)

RANDI KAYE, CNN CORRESPONDENT: We're on our way to the Gulf of Mexico right now. This helicopter is going to take us out to the Ram- Powell oil platform. It's one of about a half-a-dozen deep-water floating platforms operated by Shell Oil out there.

And this will be our first look at the damage that was done and the repairs still under way.

(voice-over): The hour-long flight takes us over the water, which is spotted with oil platforms that survived the terrible sisters -- Hurricanes Katrina and Rita.

(on camera): According to the U.S. Department of Interior, 113 structures were lost in the Gulf. Now, most of those were the older oil platforms that were in shallow water. But when those platforms toppled down, they did major damage to the pipelines and disrupted the flow of oil.

(voice-over): Shell's Mars platform, which was the biggest producer in the Gulf was one of the hardest hit. Unable to land there, we stopped at the similar Ram-Powell oil platform.

(on camera): This is what the rig looks like on Mars. It weighs as much as two 747s. The problem was that, during Katrina, it actually toppled over and fell onto the processing area, putting oil production at a standstill.

GREG GUIDRY, NEAR-FIELD EXPLORATION AND DEVELOPMENT MANAGER, SHELL OIL: For Hurricane Katrina, the clamps that clamp the rig down on Mars, they failed. And, so, the entire rig toppled over.

KAYE (voice-over): For this hurricane season, Shell has designed new clamps to withstand more than 2 million pounds of pressure -- enough to withstand another Katrina.

(on camera): That's the oil well right there?

GUIDRY: That's it.

KAYE: (voice-over): During last year's storms, drilling rigs also lost their moorings and floated aimlessly, dragging their anchors along the ocean floor.

An underwater robot, like this one, never before used so deep, repaired this crack in 2,700 feet of water. Shell says it spent between $250 million and $300 million on Gulf recovery.

GUIDRY: We came back online, and by the end of 2005, we had about 70 to 75 percent of our production back on.

KAYE: And, finally, starting today, Mars is producing oil and gas again. Before Katrina, it turned out 140,000 barrels of oil each day. It expects to reach those numbers again in June, just as the next hurricane season begins.

Still, 15 percent of the Gulf oil platforms are still down. But with an estimated 71 billion gallons of oil still out there, ready to be drilled, there was no question Shell and its competitors would rebuild. And it hopes when the next Katrina blows through, they'll be ready. (END VIDEOTAPE)

PHILLIPS: Anderson Cooper takes you behind the scenes to get the real story. Join "A.C. 360" weeknights at 10:00 Eastern.

It's everyone's nightmare, escaping a burning home. In Germany, a mother and son show courage. Watch this -- under fire, when LIVE FROM continues.

(BEGIN VIDEOTAPE)

VERONICA DE LA CRUZ, CNN CORRESPONDENT: The National Oceanic and Atmospheric Administration predicts another active hurricane season for 2006.

With hurricane season fast approaching, make CNN and CNN.com your hurricane headquarters.

NOAA says there could be 13 to 16 named storms in the Atlantic. Four to six could become major hurricanes.

A major hurricane is defined as a Category 3 or higher on the Saffir-Simpson scale, which runs from one to five.

Our online gallery highlights the kind of damage that can be expected with different category storms.

Last year, three major storms hit the U.S., and early preparation is key for your safety.

These evacuation tips can help you begin your planning.

So, don't forget, 2005 broke the official record for the most named storms in a single season.

You can check out our online special at CNN.com/hurricanes.

I'm Veronica De La Cruz for the Dot Com Desk.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

PHILLIPS: A great escape in Germany -- a mother and her 11-year- old son jump from a second-floor balcony as their apartment goes up in flames. Firefighters say the woman tried to make a rope from a safety net that she used to keep her cat on the balcony. When that didn't work, well, they jumped. Mother and son suffered smoke inhalation. The mother also hurt her hands and feet. And, by the way, the woman did take her cat with her.

Let's get straight to Tony Harris, working a developing story for us in the newsroom.

What you have, Tony?

TONY HARRIS, CNN CORRESPONDENT: OK, Kyra.

We just want to update you on the story that we are following out of Covington, Georgia. That's in Newton County, three children and two adults run over at a McDonald's restaurant. Yes, you heard me correctly there, run over. Covington Police have arrested 36-year-old Lanny Terry (ph) Barnes.

More on Barnes -- his mother tells the Associated Press her son has had mental problems for years. He has battled with depression for years. No word on how seriously the victims are injured. And if police know the motive behind this attack, they aren't saying so just yet.

But witnesses to this attack are quite clear. Kyra, they say the attack was deliberate. We will continue to follow developments on this story.

PHILLIPS: All right. Thanks to our local affiliates, WAGA -- WAGA -- for...

HARRIS: Yes.

PHILLIPS: ... those pictures.

Thanks, Tony.

HARRIS: Sure thing.

PHILLIPS: Well, flying somewhere this summer? It might drive you crazy. Brace yourself for one rough ride. Our Ali Velshi tells us more -- coming up on LIVE FROM.

(COMMERCIAL BREAK)

PHILLIPS: Well, pomp and circumstance for some pretty proud penguins. Nineteen African black-footed and rockhopper penguins, refugees from the Audubon Aquarium, were met by a brass band yesterday. FedEx flew them and a pair of sea otters back from their temporary home in California. The New Orleans Aquarium is reopening Friday with a stock of mostly new animals. It lost more than 10,000 fish to Katrina.

Well, just nine days until the start of hurricane season.

CNN meteorologist Jacqui Jeras already watching a disturbance in the Gulf -- Jacqui.

JACQUI JERAS, CNN METEOROLOGIST: Yes, keeping our eyes on it, Kyra.

Not real excited about it. Don't think it will really develop into a tropical-type system, but it is a good heads-up and a good warning that you need to be prepared now, that these things can happen any time. It's a little unorganized. You have got an area of low pressure here developing. And it's bringing in a lot of cloudiness and some showers and thundershowers into the Eastern Gulf and across the Florida Peninsula, the wet weather certainly a welcome sight, as we have got a moderate agricultural drought across central and southern parts of the state.

There you see that rain, relatively light right now, some heavier stuff kind of pushing into the Lower Keys. So, that -- that is something to watch very closely. We also have a threat of waterspouts associated with this.

So, we are nine days away from the hurricane season. We will continue to moderate -- monitor, rather, this system, as well as the rest of the Atlantic Basin, as it is going to be predicted to be a very active hurricane season. Of course, CNN is your hurricane headquarters.

We are also watching other types of weather at this hour, severe weather concerned about across parts of the Plains. And just at quarter after the hour, we got a brand-new tornado watch, which was issued for parts of South Dakota, extending down into Nebraska. Sioux Falls, you're just kind of on the cusp of this. But that's going to be a possibility for you, and kind of stretches over towards Lincoln, Nebraska, as well. So, that is going to be happening throughout the rest of the afternoon and the evening.

We may also see some severe thunderstorms a little farther to the south later on tonight, including into parts of Kansas, into Missouri, and even stretching over into parts of Iowa. Maybe Sioux City could be getting in on some of that action.

Elsewhere across the country, really starting to heat up again over the next couple days across parts of the Southwest. We finally dried up a little bit. We have got some windy conditions across parts of the Northeast. And we have had some airport delays over the last couple of hours. We have whittled them down to just two now, 15- minute ground delay into Boston Logan Airport and also at Newark, pushing an hour at this time. So, be aware of that as we are traveling.

Our severe weather system for tomorrow heads a little farther on off to the east, will be affecting you into Chicago, extending down towards St. Louis, maybe even into Little Rock, and stretching over to Memphis real late into the forecast period -- still a touch on the breezy side in the Northeast, but high pressure moving in kind of clearing you out.

There, you can see our Gulf disturbance kind of makes its way towards the Gulf Coast. And we could see some wet weather then into the Houston area, over towards New Orleans, even into Mobile and into the Panhandle. So, that's where we could see some of the heavier showers pull in, with that Gulf moisture tucking in. And, also, into southern parts of Florida, we may continue to see some more wet weather.

Things should probably be drying out, we think, with that system by your Friday -- Kyra. PHILLIPS: All right, Jacqui, thanks.

Well, talk about a sign of the times. A California gas station purports to charge an arm and a leg or your first-born child, depending on what grade of gas you want -- pump prices still topping three bucks a gallon in the Golden State. And this station owner says he, too, is fed up.

Gas prices are fueling tough questions from the Senate. Live pictures now of a Commerce Committee hearing -- on the hot seat -- actually, we don't have the live pictures right now. But the Federal Trade Commission chief, Deborah Platt Majoras, just yesterday reported only a few cases of gouging after Hurricane Katrina, and no widespread effort by the industry to manipulate the market.

And that's not sitting really well with senators, who are calling for anti-gouging legislation.

So, why drive when you can fly? Maybe because everybody else is asking the same question. From the parking lots to the plains, well, get ready for a crowded and chaotic travel season.

Let's bring in Ali Velshi.

Friendly skies? I don't think so.

ALI VELSHI, CNN CORRESPONDENT: Why did you take -- you're taking me over that -- that live shot of a congressional hearing, Kyra?

(LAUGHTER)

PHILLIPS: Is that what...

VELSHI: That would have been great. I was all ready for that.

PHILLIPS: I -- I know you were all excited about that. Unfortunately, we have...

(CROSSTALK)

PHILLIPS: Oh, wait. Here we go. I think we have it now.

VELSHI: Oh, really?

PHILLIPS: Did you get it, Scott (ph)?

No, we're not sure if it is it.

VELSHI: Well, all right. Well...

(CROSSTALK)

PHILLIPS: We have a couple different signals coming...

VELSHI: Feel free to break in.

(LAUGHTER)

PHILLIPS: OK.

(CROSSTALK)

VELSHI: But make sure you put one of those "just in" things.

PHILLIPS: We know how exciting things are on the floor, especially when they all start screaming at each other.

VELSHI: Oh, it's crazy, crazy stuff.

(LAUGHTER)

VELSHI: You know, things are getting pretty exciting in the sky.

Believe it or not, this is going to be -- it's projected to be the busiest air travel season since right after World War II, or since during World War II, when, you know, a lot of soldiers were traveling. This is going to be a very, very busy season.

And, as you know, Kyra, because we just constantly report on this, there have been layoffs and -- and shutdowns and all sorts of things. So, you are now going to be flying with a lot fewer staff on the ground and in -- in those flights than -- than you used to be.

And, as a result of oil prices that we keep talking about and as a result of, you know, smaller planes, because the airlines have downsized or are getting smaller, planes on different routes, air travel is going to be jampacked this summer, adding to already sort of tense and irritating times for some people, longer lineups, more security stuff, and, as you know, Kyra, because it seems to happen on your watch a lot, evacuations of airline terminals or planes because of, you know, bogus bomb reports or suspicious packages.

So, get ready. As we are getting ready for that summer driving season you were just talking about, get ready for a very, very active and busy summer flying season. And -- and, as we just heard, there is delays because of weather. We are starting to get into the hurricane season. So, we are going to start to see those kind of things happening.

So, it's not looking like a fantastic time this summer for air travelers. And those who are traveling will shell out a bit more for it.

PHILLIPS: You know what I say? We fly the Airbus 380. You know, it's got the...

VELSHI: Yes.

PHILLIPS: ... fitness center in there. It's got the duty-free shops. It's got a couple bars.

VELSHI: It's going to take a while to load and unload that thing, though. PHILLIPS: Yes. But, hey, man, for all the perks, let's go.

VELSHI: But, you see, this is the thing, Kyra. When -- you know, if you remember flying a few years ago, it always -- they had big planes going all over the place. And, routinely, you could get, you know, a bunch of seats in a row and -- and spread out.

That doesn't happen much anymore. They have really changed to smaller planes. I just booked a flight to Saint John's, Newfoundland, which is in the middle of the North Atlantic, from New York.

PHILLIPS: Why are you going there?

VELSHI: I'm -- I'm going -- there is a conference there I'm going to go to.

PHILLIPS: Oh, OK. What kind of conference?

VELSHI: It's a nice place. But they're flying on of one of those Embraer things. I don't know.

PHILLIPS: OK. I'm sorry.

VELSHI: They are flying on one of those Embraer, those small -- those small planes, for like five-and-a-half-hours...

PHILLIPS: Yes. It's brutal.

VELSHI: ... over the Atlantic. That never used to happen.

PHILLIPS: I...

VELSHI: It used to be, that was a trip that you took a big plane for.

PHILLIPS: No, I had to -- I had to fly to Kansas. And it was more than -- than two hours where I was going. And I was shocked that it was one of those smaller planes.

VELSHI: Smaller planes, more money.

PHILLIPS: You know, you're always biting your nails off, you know, because it's really loud and you can't hear anything.

(LAUGHTER)

PHILLIPS: It's vibrating the whole time.

VELSHI: But -- but the economy is going well.

You know, the economy is doing well, Kyra, so people are shelling out the money. The demand is still there. Now, if these oil prices keep going up -- because that's the biggest cost for the airlines now. It used to be labor. But since they have laid off so many people, it's -- it's -- it's gasoline. And, if that keeps going up, well, I don't know, at some point, people -- I don't know. I often -- I often think, with gas prices going up, people will stop spending somewhere, but we're not seeing a whole lot of that going on.

PHILLIPS: Well, something has got to hit somewhere, right?

VELSHI: Something, yes, eventually. If we keep talking every day, we will eventually hit on it.

PHILLIPS: See you in a little bit.

VELSHI: Talk to you later.

PHILLIPS: Closing bell. All right.

Let's get straight to Tony Harris, news in on the new head of the CIA.

HARRIS: Moving along that path, Kyra -- the Senate Intelligence Committee and Senator Pat Roberts reporting that the Senate committee, Intelligence Committee, has approved the nomination of General Hayden to be the next CIA director. The committee voted 12-3 to send the nomination to the full Senate.

Again, the vote was 12-3. General Hayden could be confirmed, Kyra, as the new CIA director by week's end, just as the outgoing director, Porter Goss, is scheduled to leave. So, once again, the vote is 12-3 to move the nomination of General Michael Hayden to the floor of the Senate for -- for the vote, probably later this week.

PHILLIPS: All right. I bet we will have an answer in a couple days.

HARRIS: Yes, we will.

PHILLIPS: Thanks, Tony.

HARRIS: OK.

PHILLIPS: The news keep coming. We are going to keep bringing it to you -- more LIVE FROM right after a quick break.

(BEGIN VIDEOTAPE)

LINDA STOUFFER, CNN CORRESPONDENT (voice-over): The breathtaking beauty of the Pacific Northwest. It's where 65-year-old Jim Scott feels at home.

JIM SCOTT, CASCADERAMBLINGS.COM: I recognize the trees, the different tress, the different shrubs, the trails, the animals. I feel like I'm -- I'm really among friends.

STOUFFER: Now that he's retired, the Oregon native has more time to spend outdoors with his wife, Jeanette. Jim researches the best spots to hike, fish, ski and view wildlife. Then he posts trip reports on his Web site, cascaderamblings.com. His son Michael developed the site for him five years ago.

SCOTT: I work on a product daily. We average around 500 hits a day. There isn't any money made on it. It's all volunteer labor, a labor of love, yes.

When we're out hiking, people will come up and, in the course of the conversation, it comes up that I'm Jim Scott from cascaderamblings. And they will say oh, yes, we love your site. We use it all the time.

It keeps the mind stimulated. I'm always researching the plants and animals that I find and photograph, and new places to go. I think people that are successful in retirement and happy are people that have something that gives them a reason for getting up out of bed and staying off the couch.

STOUFFER: Linda Stouffer, CNN.

(END VIDEOTAPE)

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