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CNN Live Today

Galveston Evacuates Ahead of Rita; President Bush Discusses Storms; New Orleans Re-Evacuates for Hurricane; Analyst: Rita Could Lead to Another Gas Hike

Aired September 21, 2005 - 12:00   ET

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

DARYN KAGAN, HOST: Hi, I'm Daryn Kagan. Welcome back to CNN LIVE TODAY from the CNN Center in Atlanta. Let's take a look at what's happening right now in the news.
Hurricane Rita is a Category 4 at this hour. Conditions are ripe for it to get even bigger. That has prompted evacuation orders along the Gulf Coast, including low-lying areas around Houston. A live update on the storm's location and predicted path is just ahead.

In Washington, Senate leaders conferred with President Bush this morning about replacing Justice Sandra day O'Connor. It is a crucial decision because the political make-up of the high court hangs in the balance. No one has yet been nominated.

And AAA confirming what most motorists already know. Gasoline prices have retreated from the record levels immediately after Hurricane Katrina. A gallon of unleaded regular now costs an average of $2.76.

Up first this hour on CNN LIVE TODAY, a case of deja vu in the Gulf of Mexico. A potentially catastrophic storm, Hurricane Rita, is growing stronger by the hour as it churns its way toward landfall later this week.

And right now, Galveston, Texas, appears to be in the bull's eye. People there are already packing up and heading to higher ground. But other parts of the Texas and Louisiana coast and northeastern Mexico are also possible targets.

And take a look at this. It's a mass of swirling crowds known as Hurricane Rita that's heading into the open Gulf. And that's where it's expected to feed on extremely warm water. There's nothing to slow it -- excuse me, to slow it down.

Just a few hours ago it went up another notch to -- on the intensity scale to Category 4. That's the same level as Hurricane Katrina, which slammed the north central Gulf Coast just over three weeks ago.

So while there certainly is no guarantee that Rita will slam into Galveston, Texas, that area is taking no chances. Good reason: history speaking here. A hurricane back in 1900 flattened the city, killing an estimated 6,000 people.

Our Deborah Feyerick is in Galveston and brings us more on what they're doing today to prevent such a tragedy -- Deb.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT: In the morning, 2,000 people reserved spaces. The city called in some 80 school buses to make sure that everyone could be evacuated. And so these folks called on Monday to make sure they'd get one of those seats.

People are bringing a bag filled with a couple of changes of clothing, medication. City officials telling these folks bring at least three month's worth. A couple of folks brought some Bibles and school books.

Families evacuating with their children, people evacuating with their pets. The city made the determination that yes, pets could go with their owners, try to avoid some of the problems that happened in New Orleans.

But a state of emergency does exist. Mandatory evacuation earlier this morning for people living in nursing homes and assisted living facilities. Depending on how the storm hits and where it hits, it is likely that Galveston will impose that mandatory evacuation by 6. They're willing to move up. That's Central Time, of course, if indeed, they have to.

All these folks going to shelters in Huntsville, Texas. Red Cross ready to receive them there.

Deborah Feyerick, CNN, Galveston, Texas.

(END VIDEOTAPE)

KAGAN: From Galveston to Washington D.C. President Bush, a live picture of him right now. He is appearing at a luncheon for Republican Jewish Coalition anniversary luncheon. We are going to monitor his comments. If he says another about the upcoming hurricane or the recovery from Hurricane Katrina, we will bring you those comments.

Meanwhile, while we do that, let's check in with our Jacqui Jeras, who is bringing us the latest on Hurricane Rita.

Jacqui, hello.

JACQUI JERAS, CNN METEOROLOGIST: Hello, Daryn.

It's continuing to get stronger. Hard to believe as it's already a very powerful Category 4 hurricane, packing winds of 140 miles per hour.

An extremely impressive satellite picture here. And the storm is getting larger by the minute, also. The tropical storm force winds extend out about 140 miles from the center of the storm. So do the math. That means it's about 280 miles across. And we're expecting that wind field to expand more as the storm continues to strengthen as it moves over the warmer waters of the Gulf of Mexico. It's moving in a westerly direction right now at about 13 miles per hour. It's pulled away from the Keys. There you can see on the radar picture. All the showers and thunderstorms now are to the west of Key West. Still kind of trying to get a few of them going up near the Dry Tortugas. But overall the storm is history for you.

We are seeing some isolated showers and thundershowers still kind of scraping along the coast near Naples, extending on up towards Port Charlotte. But conditions will continue to improve very dramatically throughout the rest of the day today and throughout tonight.

Now the forecast projected path has the storm staying very strong. And we're likely going to see some fluctuations in intensity. It's very common for storms at this strength to blow up a little bit stronger, weaken a little bit, blow back up. So we'll watch the intensity go back and forth. And certainly can't rule out it going to Category 5 strength at some point.

The good news is that the conditions in the western Gulf, the temperatures are a little bit cooler here. So that would be more favorable for it to start to weaken a little bit as it heads towards the coastline.

Either way, we think this is going to be a major hurricane, Category 3 or better, making landfall along the Texas coastline, focusing in between Corpus Christi and Galveston, Texas. And that will happen late Friday night, we think, or early Saturday morning -- Daryn.

KAGAN: Jacqui, thank you for that.

When it swept past the Florida Keys, Hurricane Rita was much weaker. It was a Category 2 storm. But it still pounded the island chain with torrential rains and heavy surf. Tourists and residents were ordered out as Rita approached, but many residents decided to ride out the storm.

In Key West, a lot of roads were swamped and covered in sand. Some buildings were flooded, and power was knocked out. But overall, officials say the city fared well.

Now I want to go live to Baton Rouge, Louisiana. Officials there briefing on what they're doing to get ready for Hurricane Rita.

MARKETA GARNER GAUTREAU, LOUISIANA DEPARTMENT OF SOCIAL SERVICES: I don't know where my child is. Mom has custody. Mom's always had custody. That goes down as a report. Kid is with mom is & kid is fine.

So they have come out saying don't be deceived by these large numbers on the web site. We are going to work and talk about the children that we are working with.

On Friday I told you we had 11 children that we were working to place. We have placed all but three of them. One of them is with an aunt. And we still haven't found the biological mom. So we're still working that case.

One is a medically fragile child that was in long-term care that may have to stay in long-term care.

And the third one is a little girl named Tyler who is 4 years old, who was found wandering outside of the convention center before the storm and attached herself to a couple. Gwen Newman and her husband have just taken Tyler in and escaped with her, walked across the bridge, got rescued by friends and family. And they are now living with 13 other people in a home of friends in Labittyville (ph).

We don't know anything about Tyler except she's about 4 and her name is Tyler. And so we are trying. That is one of the kids that we are trying to reunite, and we are working with media outlets across the nation, telling Tyler's story so that we can reunite Tyler with her family.

Then our foster kid count, you heard that last week that we had 500 foster children still missing. That is down to 408 as of this morning. So as we get in touch with our own case workers, we are identifying where our foster families are.

And in preparation for Rita, we have already begun calling all of our foster families in the new projected affected area. And they are getting evacuation information, contact information, cell phones, where we anticipate people leaving so that we ensure we don't have families get fractured again.

We also have DSS staff at the bus site. As we load people onto the buses to evacuate them, we will be ensuring that families are all together. That we are not having the same thing that happened last time. That if mom gets on the bus, we're going to make sure mom has all of her kids with her.

And so that is some of the work that we are doing, getting our families ready for the impact of Rita. And there's more information on the DSS web site, if you want to go there. It's DSS.state.la.us. And I'll take questions.

Oh, I did it so good, you don't have any questions? All right, Terry.

UNIDENTIFIED MALE: What's the name of the couple?

GAUTREAU: Gwen Newman and I don't know her husband's name.

UNIDENTIFIED MALE: N-E-W-M-A-N.

GAUTREAU: That's what I have.

KAGAN: All right, we're listening in to officials in Baton Rouge, Louisiana. While we're doing that, also listening to President Bush. I'm monitoring that for you. He's speaking at the Republican Jewish Coalition's anniversary. If and when he makes comments about Hurricane Katrina or Hurricane Rita we will bring you those comments. Meanwhile, let's go to New Orleans. People there keeping their fingers crossed that Rita doesn't turn and head their way. New Orleans has made a lot of progress in efforts to recover from Hurricane Katrina. The commander of federal troops in New Orleans says the mission there could be winding down soon. It all depends on what he calls Lady Rita.

(BEGIN VIDEO CLIP)

LT. GEN. RUSSEL HONORE, U.S. ARMY: We'll be told when we've satisfied our mission. We're approaching that. And because I know our troops' families want to know when they're coming home too. But Rita has a vote. And we'll see what Lady Rita does.

(END VIDEO CLIP)

KAGAN: and for the latest on the situation in New Orleans, let's check in now with CNN's Mary Snow.

Hi, Mary.

MARY SNOW, CNN CORRESPONDENT: Hi there, Daryn.

Yes, New Orleans closely watching Rita. And New Orleans is nervous, even though the mayor said yesterday that it appears that New Orleans may escape a direct hit. He doesn't want to take any chances. He ordered a mandatory evacuation for here in the east bank of New Orleans. The west bank, a voluntary evacuation.

If you can see behind me, this is the convention center. This is the staging area. As you can see, it's pretty much empty right now. We have members of the Oregon National Guard. I'm sorry, the Oklahoma National Guard standing by.

Only about a handful of people came by this morning to board buses to leave New Orleans. The mayor said yesterday about two buses of evacuees left. He told people if they don't have a way to get out of the city, that they could come here to the staging area, that he had 500 buses standing by.

As you mentioned, there's been a lot of progress here in New Orleans. The Army Corps of Engineers saying that the city is essentially dry, that the pumping went faster than anticipated. However, there's real concern that even a few inches of rain could trigger flooding -- Daryn.

KAGAN: All right, Mary. Thank you for that. We're going to cut your report a little short so we can hear President Bush speaking about Hurricane Rita.

(JOINED IN PROGRESS)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... and today, we've got another hurricane headed for Texas and Louisiana. I spoke to the governor, Perry. And I spoke to Governor Blanco yesterday about the preparations being made for this storm. Federal, state, and local governments are coordinating their efforts to get ready. Mandatory evacuations have been ordered for New Orleans and Galveston. I urge the citizens to listen carefully to the instructions provided by state and local authorities and follow them.

We hope and pray that Hurricane Rita will not be a devastating storm, but we've got to be ready for the worst.

The scenes we've witnessed in the past three weeks in Alabama and Mississippi and Louisiana have touched our hearts. And it moved this nation to action. I'm not talking about just government. I'm talking about the whole country.

(APPLAUSE)

There has been an amazing outpouring of support all across America. And it sent a clear message to the victims of Hurricane Katrina: "This nation cares about you. You are not alone."

I made a pledge to the people of Alabama and Mississippi and Louisiana that, "We are going to stay as long as it takes. We'll do our job to help you recover." People need to hear that loud and clear.

(APPLAUSE)

And I outlined our strategy for reconstruction on the Gulf Coast. It rests on three commitments.

First, we're going to help meet the immediate needs of those whose lives were turned upside down.

You got to understand: thousands of people had to leave their homes and left all their possessions behind and went to shelters all throughout America. We have a duty to help them.

So far, we've mailed checks to 600,000 evacuee families to help them pay for food and clothing and other essentials.

BUSH: We helped them register for other aid that will be available because of laws on the books.

Second, we're going to help the citizens get their lives back together. We've got housing assistance going to evacuees. We understand they can't live forever in shelters. We have a strategy to help them go from shelter to apartment or shelter to home.

We sent doctors and nurses to the region to help.

You know, an amazing thing that's happened is, a lot of states have accepted the kids of these families into their schools. What a fantastic gesture of compassion and decency.

In our own state of Texas, school district after school district has said, "If you have a child that's school-age, bring them to us. We'll help educate them." The federal government has an obligation to reimburse those school districts. I'm going to work with Congress to make sure we fulfill that obligation.

(APPLAUSE)

And third, we're going to help ensure that the communities emerge stronger and better.

The storm caused huge suffering, as I told you, but it's an opportunity to bring new life to neighborhoods that were suffering before the storm. So I propose some interesting ideas. And I want the United States Congress to listen carefully to these ideas.

First, I believe we ought to create Gulf opportunity zones up and down the devastated areas, to provide tax incentives and tax breaks to get business and jobs back in that area as quickly as possible.

(APPLAUSE)

If you want to grow something, you shouldn't tax it. If you want to encourage small business growth, we ought to incent it to grow in that part of the world.

Somebody said the other day, "Well, that's a tax break." That region's going to have zero income anyway. There's nothing there in many parts of it. It makes sense to create economic incentives for jobs to exist. We want people heading back there for good, decent, good-paying jobs.

(APPLAUSE)

BUSH: I propose worker recovery accounts to help evacuees be prepared for the jobs that are going to exist in that part of the world.

Listen, there's going to be a construction boom down there. We want people from that part of the world being prepared to take on those jobs. And so these worker recovery accounts will help with job training.

I believe in urban homesteading. That says we're going to identify federal property and provide lots for low-income citizens that they'll have for free so long as they build on a house on there with a mortgage or with the help of a charitable group like Habitat for Humanity.

We got a fantastic chance as we rebuild. See, when those streets are open, we want to be aligned with businesses, including businesses owned by minorities. When those houses are rebuilt, we want more owners and less renters. When reconstruction is complete, we ought to look back at Hurricane Katrina and say that this country grew not only in prosperity, but in character as well.

(APPLAUSE)

There's a federal role to play, and we'll play it. We'll do our duty.

But there's also a state role and a local role. I believe as the vision of New Orleans emerges it ought to be planned by people from New Orleans, and as a vision of that Gulf Coast of Mississippi emerges, it ought to be planned by the people in Mississippi.

And we're going to help them. We'll help them make right choices. But we got to remember that perhaps the greatest engine for change and growth will be the private sector. So as Congress thinks through a strategy, let's encourage the private sector to come in and help build those jobs and rebuild those lives.

(APPLAUSE)

We'll make sure that your money's spent wisely. We're going to make sure we make tough choices and set priorities here in Washington, D.C. And we're going to make sure that the money is spent honestly by sending a team of inspector generals down there to review all expenditures.

BUSH: That's what the people of this country expect. And that's exactly what we are going to do.

(APPLAUSE)

The American people have got a role to play in this effort. And since this storm, our nation's armies of compassion have rallied and have come to the aid of people who are in desperate need of help. Our charities and houses of worship and idealistic men and women across this country have opened up their homes, their wallets and their hearts. It's been an amazing, amazing outpouring of help.

And the Jewish community of this country has been on the forefront of the efforts. At Tulane University, the director of the Chabad, Rabbi Rivkin, brought teams of students to New Orleans and southern Mississippi and other communities hit by the storm. He called in folks to help.

He didn't say, "Head away from the storm area." He said, "Let's take it right to the middle of the storm area to help people."

They helped rescue stranded people. They distributed bottled water and self-heating kosher meals. They cleaned up and helped salvage homes. They provided spirit you'll support for those who lost loved ones.

And one who was rescued from New Orleans, put it this way: "In the days after Katrina hit, Chabad saved lives."

(APPLAUSE)

Rabbi Stan Zamek, of the Temple Beth Shalom Synagogue in Baton Rouge, Louisiana, helped an African-American couple displaced by the storm track down their daughter in Maryland. When Rabbi Zamek called the daughter, he told her, "We have your parents," she screamed out, "Thank you, Jesus." (LAUGHTER)

He didn't have the heart to tell her she was thanking the wrong rabbi.

(LAUGHTER)

Jewish organizations have thus far raised $17 million to help the victims of Katrina.

(APPLAUSE)

BUSH: Our citizens are answering the call of the Prophet Isaiah: "If you give what you have to the hungry and fill the needs of those who suffer, then your light will rise in the darkness and your darkness will be like the brightest time of day."

People are hearing that call all across the country.

There's more work to be done. I urge you to continue to pay attention to the folks down there by contributing to the Red Cross or the Salvation Army or the United Jewish Communities or B'nai B'rith International or the American Jewish Committee.

(APPLAUSE)

It's important.

We got a lot of work to do. But when it's all said and done, people are going to realize that this country can respond to crises and help a neighbor in need. This country has got an enormous heart and enormous compassion.

After it's all said and done, because of the compassion and outpouring of our people, the country's collective heart is going to be stronger and better.

You know something? I've been thinking a lot about how America has responded and it's clear to me that Americans value human life and value ever person as important.

And that stands in stark contrast, by the way, to the terrorists we have to deal with.

You see, we look at the destruction caused by Katrina and our hearts break. They're the kind of people that look at Katrina and wish they had caused it.

We're in a war against these people. It's a war on terror. These are evil men who target the suffering. They killed 3,000 of our people on September the 11th, 2001. And they've continued to kill.

See, sometimes, we forget about the evil deeds of these people. But they've killed in Madrid and Istanbul and Baghdad and Bali and London and Sharm el-Sheikh and Jerusalem, Tel Aviv, around the world. They continue to kill. They have a strategy. They want to achieve certain objectives. They want to break our will. They want the United States of America and other freedom-loving nations to retreat from the world.

Why? Because they want safe haven. They want to topple government. Just think Taliban and Afghanistan. That's their vision. And we can't let them do that.

KAGAN: We've been listening to President Bush. He's speaking at the Republican Jewish Coalition anniversary luncheon. President Bush talking a big chunk of time there about Hurricane Rita, encouraging those to get out of the way that might be in the path of Hurricane Rita. And more on that in a little bit on our news cast here.

But also talking about the recovery from Hurricane Katrina, President Bush saying the federal government will do its part. He also expects state, local and private organizations to do theirs, as well.

We are looking at Hurricane Katrina and New Orleans, and the levees aren't the only vulnerability in Rita's path. Many of the nation's oil rigs could be hit, too, and refineries, and that could drive up gas prices yet again. Up next, Rita's effects on your wallet.

And later...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: There's going to be hell to pay. This is trouble with a capital "T," I say.

(END VIDEO CLIP)

KAGAN: He says Hurricane Katrina was the worst storm he's ever seen and that Rita could be a close second. You're going to hear those frightening predictions from one of the world's foremost hurricane experts. We're back after a quick break.

ANNOUNCER: CNN, your hurricane headquarters.

(COMMERCIAL BREAK)

KAGAN: The Federal Trade Commission has launched an investigation into that spike in gas prices in the days after Hurricane Katrina hit. The probe was requested by the Senate. It was confirmed today by the FTC, by an official there. Several governors are demanding refunds to consumers if it's proven that oil companies took advantage of the crisis.

So Rita is now threatening major Gulf oil rigs and refineries. Crude prices are surging again. They're up more than $1 a barrel just today. Let's talk with analyst Craig Smith. He's in Phoenix. His book about the oil industry is called "Black Gold Stranglehold."

Good morning. Thanks for being with us. CRAIG SMITH, AUTHOR, "BLACK GOLD STRANGLEHOLD": Good to be with you, Daryn.

KAGAN: What are you expecting in the wake of Hurricane Rita, if it does, indeed, slam into the Houston, Texas area?

SMITH: Well, you know from being from Phoenix, Daryn. And we miss you here, by the way.

KAGAN: Thank you, appreciate that.

SMITH: I've been watching this since 2:00 this morning. We're now at a Cat 4 level hurricane. If you look at the path it's going to take us directly through about 134 rigs in the middle of the Gulf.

We're very, very concerned that if it stays at a Cat 4, or God help us if it goes to a Cat 5, if it rips through these oil fields, we could have damage that is going to really create havoc in the refining processes on the coast of Texas and also the production that we have coming out of the Gulf. More importantly, the natural gas that's coming out of the Gulf.

We provide about 24 percent of the nation's natural gas from these rigs. And we have done a wonderful job recovering from Katrina. But if this thing hits hard, Daryn, it's going to have a devastating impact on the energy complex.

KAGAN: Now, you say more importantly natural gas. Why do you make that differentiation?

SMITH: Well, about 24 percent of the natural gas is coming from these rigs. A lot of these rigs are shut in. We know yesterday, big companies like Chevron, BP, Shell, started evacuating their rigs. We now hear that Exxon and Conoco and Adarko are starting to follow suit. We have already seen natural gas prices go from $5 per MNBTU to today, $12.66.

KAGAN: OK, translate that, Craig, into what it means to somebody's home heating bill.

SMITH: Well, let's say it's costing you $15 a month to run your hot water heater. It's going to run you probably $40 a month real soon here. And of course, home heating oil has almost doubled, Daryn.

And it's a question of refining and distribution. It's really not a question of crude right now. Because the Saudis have promised us crude. President Bush made the SPR available after Katrina. It's really refined product and distributing it to the nation. A lot of the diesel fuel for the Midwest comes from this region of Texas.

KAGAN: Right, I'm seeing, what, 10 refineries. About 13 percent of the U.S. capacity comes from that region?

SMITH: Yes. We actually have 26 refineries that are in the direct path of this. Valero has got two of the heavy crude refiners. What my big concern is, Daryn, we're bringing the crops in in the Midwest right now. If we have any disruption of diesel going to the Midwest, it could effect corn prices, wheat prices. So again, you know, I'm not saying, "Chicken Little, the sky is falling."

KAGAN: Right. Because you know, the other part of this was the hysteria that comes with it. You know, we saw here in the Atlanta area right after Katrina people went nuts saying that the gas stations were going to close. And there were gas lines for blocks out of every single gas station in town.

SMITH: Yes, and I think that we need to -- to reserve any actions. And I'm glad to see that the commodities markets are not going ballistic today like they did two days ago with oil up $4.50 a barrel.

We do have increases. Hopefully they'll be looked at on a long- term basis instead of short term spikes. But I can't undervalue, if this hurricane hits in the center of these fields, Daryn, it could take us -- I mean, look, the oil companies are recovered rather well after Katrina. . They're back to 56 percent.

But, the damage that we are talking about here, it hit the fringes of the oil field and Katrina. This one is headed right down the middle of the alley. And that's what has many of us that are watching this very concerned right now.

KAGAN: Well, let's hear -- hoping that it takes a different turn. Craig, thanks for your expertise. Appreciate it. Craig Smith, on the phone from Phoenix, Arizona.

Well, the deaths that were blamed on Katrina topped the 1,000 mark today. Most of the deaths, about 800, are in Louisiana. That is where bodies are still being recovered. Mississippi accounts for about 219 fatalities.

Houston's mayor is calling for residents in that city to evacuate flood-prone areas, as well as mobile homes. Hurricane Rita could impact the metropolitan area Friday and Saturday. The mayor is calling for schools and businesses to shut down on Thursday and Friday, as well.

Well, she's not in Texas anymore. Iraq war protester Cindy Sheehan is in Washington this hour. She plans to lead a march and rally against the war on Saturday. Sheehan's son died in Iraq. She camped outside President Bush's ranch this summer in protest.

And in Texas, they are bracing for Hurricane Rita. Evacuations under way in Galveston. That is the city in the cross hairs of the storm. An update for you on the projected path of the storm. We are awaiting a briefing from Texas Governor Rick Perry in just a few minutes. We will monitor that for you.

We're back after a break.

(COMMERCIAL BREAK)

KAGAN: And we go live now to Austin, Texas. Here is Texas Governor Rick Perry.

GOV. RICK PERRY, TEXAS: Traffic is most likely to be significantly heavier along the evacuation routes. I want to be clear that I am speaking specifically about the evacuation of coastal communities. The mayor of Houston, the county judge, have also made recommendations for residents of Harris County to voluntarily leave their low-lying flood-prone areas. I'm not suggesting anything different than what they have recommended for that very populated area.

The state is already working to evacuate people in state-run facilities. We are continuing to work with local officials to remove people that do not have the means to self-evacuate.

Let me conclude by saying that there's no need to panic. We've been preparing for this type an event for a number of years. We have run a great many training exercises for an event just such as this. We re-evaluated and we have improved our hurricane preparedness plans after Florida was hit four times in one year. We are doing everything that we can to prepare for this storm.

I encourage coastal residents, in a calm fashion, to gather important documentation, secure their property to the best of their ability, fill up their gas tanks, pack water, non-perishable goods, flashlights, batteries and adequate supply of medicine, study their local evacuation routes. Begin proceeding to more secure areas in an orderly, safe manner.

Homes and businesses can be rebuilt. Lives cannot. If you are on the coast between Beaumont and Corpus Christi, now's the time to leave.

Thank you.

And Steve McGraw, the director of Homeland Security and I will be happy to attempt to answer any of your questions.

KAGAN: Well, it looks like we're going to get a switch of the camera there. That was Texas Governor Rick Perry talking -- saying a lot of what we heard from the Houston mayor earlier this morning. Basically, now is the time to get out. They are being -- having a unified front there in Texas and getting people out of the Houston area and out of Galveston, as well.

(WEATHER REPORT)

KAGAN: We're focusing along the Texas Gulf Coast. There is particular concern about Hurricane Rita from the residents of Galveston, Texas. They have seen the devastation from Katrina and they are taking no chances. Their city is one of the areas that could get hammered when Rita end its trek across the Gulf of Mexico. As the storm sweeps across the Gulf, some mandatory evacuations already under way in Galveston. The city keeping its eye on Rita and remembering its own history. It was this month 105 years ago that a huge hurricane flattened Galveston, killing thousands of people. The Atlantic, by the way, averages six hurricanes a season. Already, Rita is number nine and there are still two months to go in the season. Legendary hurricane forecaster William Gray predicted this hyperactive season. Denver reporter Jeremy Hubbard with our affiliate KDVR sits down with the professor.

(BEGIN VIDEOTAPE)

DR. WILLIAM GRAY, HURRICANE FORECASTER: This is Rita. And it's moving a little west.

JEREMY HUBBARD, KDVR REPORTER (voice-over): The father of hurricane forecasting predicting one mother of a storm.

GRAY: There's going to be hell to pay. This is trouble with a capital T.

HUBBARD: If it stays on path, there will be massive damage to oil production, higher gas prices, property damage approaching $100 billion.

GRAY: The only thing I've ever really seen that really looks worse than this is maybe Katrina.

HUBBARD: And Gray should know. A worldwide authority on hurricanes, he predicted all of this would happen months before it did. And if his predictions remain true, you can bet on one or two more major storms before the season is up.

GRAY: This has been extremely active. We don't know if this is going to be the most active season on record or not. 1933 had 21 storms.

HUBBARD: Where Gray differs with other experts is the cause of these storms. He says there is no proof global warming has anything to do with it.

GRAY: No, these are natural things. We just got to adapt to them as best we can.

HUBBARD: For now, like the rest of us, he is just keeping an eye out for Rita, tracking it, watching and waiting, and wishing that this one time he wasn't right.

GRAY: I think it's going to go to at least a Cat 4.

(END VIDEOTAPE)

KAGAN: Well, and for those of you that are counting, for the record, the most hurricanes in a season came in 1969. There were 12.

There is a little good news to report in the wake of Hurricane Katrina. Up next, we're going live to the Center for Missing and Exploited Children with some stories of success at reuniting children with their families separated by the storm.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

KAGAN: All right, from Wall Street to Galveston, Texas. The mayor now, well, she was speaking. Let's go ahead and listen in. These are city officials in Galveston, Texas talking about preparations for Hurricane Rita.

(JOINED IN PROGRESS)

UNIDENTIFIED FEMALE: Administrative staff will relocate to the San Louis (ph) on Friday, probably Friday morning. The level the details are being worked out now, Marty; I can't tell you exactly when EOC will move.

QUESTION: Can you tell us what type of weather we might expect tomorrow, on Thursday?

UNIDENTIFIED FEMALE: I don't know the answer to that, Jim, but everything I've heard so far is the weather is great for evacuation.

QUESTION: Can you agree that once the administrative staff moves to San Louis, that we'll just keep the...

UNIDENTIFIED FEMALE: We will do that. We will do that.

QUESTION: You said water will be turned off on Friday morning. You are working to protect the sewer lines. Massive evacuation for people who were unable to get out today. Are there any other steps the city is taking to protect the (INAUDIBLE) property within the next 48 hours?

UNIDENTIFIED FEMALE: Absolutely. And again, it's not water everywhere in the city. The public works director is making determinations of where to save the water lines and the sewer lines, and he's a professional engineer, and he will make those decisions, and we'll give you the specifics as soon as we have them.

KAGAN: We are going to keep listening in to this. Once again, these are city officials in Galveston, Texas, doing everything they can to get people up and out. Right now it is a voluntary evacuation from Galveston, Texas.

Over the past few days, CNN has given you the names of children that were missing or separated from family members following Hurricane Katrina. That effort to reunite these families is still going strong at the Center for National and Exploited Children (sic). That's where we find our Kimberly Osias.

KIMBERLY OSIAS, CNN CORRESPONDENT: Hey, there, Daryn.

Well, the trend is definitely shifting here at the National Center For Missing and Exploited Children. We are seeing reunions happening much more frequently, or reunifications.

And one thing that we want to be sure to point out, as we have, is these are not missing children in sort of the purest of terms. Oftentimes these are families or children divided. One sibling may be in one shelter in the southlands, and another sibling or a parent could be clear across the country, in Midwest, anywhere. I mean, this is a situation unlike any other that we have seen.

And almost as the volunteers here are getting a handle on things and breathing sort of a collective sigh, there is Rita as a category- four in the Gulf.

In the offing, joining me now to talk about the preparedness and how ready we really are on the front of the calls, et cetera, is Ernie Allen, the president of the national center.

And what kind of lessons, Mrs. Allen, have you all learned, if you are needed, with Rita?

ERNIE ALLEN, PRES., NATL. CENTER FOR MISSING & EXPLOITED CHILDREN: Well, I think we have learned on the job, as it were. We have learned one thing that most parents in these situations don't have pictures. So we hope that affected people in Texas, if they have to relocate, will take family photos with them, have a family plan, try to keep your family together, so they don't get divided. Most of all, just be prepared.

OSIAS: I was making a joke with one of the case workers earlier that when I was little I had a piece of paper with my name and address in my shoe, and as elementary, or rudimentary as that sounds, that's not a bad idea.

ALLEN: It's not a bad idea at all. Do a little simple I.D. for your child. So many children in this situation were not able to tell us, to tell social services who they are, and where they lived and what their mom's name was.

OSIAS: Thank you so much. And I want to tell you, we just good news about Tia Franklin (ph). Talking about these reunifications that are happening quickly. From New Orleans, moved with her 72-year-old grandmother to a new location, enrolled in a new school. Now get this, this is just amazing how these reunifications are happening.

One of her new classmates actually saw her picture on TV, informed the principal, who in turn called the Red Cross, and the Red Cross workers called here. Really, the center has been acting as a clearinghouse in connecting those dots. Very important and hopefully those numbers of those reunifications will continue to rise -- Daryn?

KAGAN: We like it when it works out like that. Kimberly Osias, thank you. Ahead on CNN LIVE TODAY, he's done it again. Paul McCartney releasing his 20th studio record since the days with the Beatles. I had a chance to sit down and talk with him last night. And we'll give you a sneak peek coming up, in a bit.

(COMMERCIAL BREAK)

KAGAN: Closing out our hour with a brief break from the hurricane coverage. Paul McCartney is out with a new album. He's backing it with a 37 city U.S. It's called Chaos and Creation in the Backyard. It's drawing critical praise. I had a chance to sit down and talk with Sir Paul last night about growing old, the loss of a Beatle band mate, and the disaster here in the U.S.

(BEGIN VIDEOTAPE)

PAUL MCCARTNEY, SINGER/SONGWRITER: Coming with the tour, particularly after 9/11, and now with Katrina, you do feel like you are coming in with some sort of healing influence that people are seeing all of this tragedy on the TV and they are just living that day in and day out. And they need a bit of a release. So often, if we are lucky, you know, we provide a little bit of a release. Hopefully the music will help them through their troubles. That's what it's all about.

KAGAN: Speaking of loss, we are getting close to the anniversary of the death of George Harrison. You still think about him often? One of the interviews I read said that one of the songs on the new album you thought of him?

MCCARTNEY: Yes. There's one of the songs that strangely -- you know, I didn't realize I was thinking of George, but I was just writing a song. One of the songs on the new album is called "Friends To Go." And I started off, you know, I'll be waiting on the other side. I'm thinking, what am I writing about here? Is it the other side of life or the other side of the street, you know?

And as I went on, I just got the feeling that it was a very George song. It wasn't like I was channeling him. You know, this is the spin that gets put on it, he was channeling, but it wasn't like that. It was just like, I suddenly thought this could be a George song.

KAGAN: The question that I'm sure you get asked many times because you did turn 63. Are you singing out there when I turn 64?

MCCARTNEY: No, I'm not singing that yet. But I have a nasty feeling I might be next year. My kids said to me, dad, you have got to disappear off the face of the planet.

KAGAN: For that one year?

MCCARTNEY: Next year. Next year, don't be here. And I said, oh, well, it's either that or I'll be right in the middle of it all. So I haven't yet made the decision. If you don't see me next year, you'll know why.

KAGAN: We heard it here first. Anything left to do? Still many more songs in there?

MCCARTNEY: I don't know. You know, I don't count how many I've done. I just like doing it. I love what I do. And so that's what's left to do.

(END VIDEOTAPE)

KAGAN: He has a lot more left to do. Paul McCartney taking part in the MTV/VH1 concert telethon this month for Katrina victims.

CNN is the place you want to be for Hurricane Rita and the rebuilding after Katrina, after Rita. I am Daryn Kagan. "LIVE FROM" with Kyra Phillips will be coming up after a quick break at the top of the hour. I'll see you tomorrow morning.

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