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CNN Live Sunday

No. 2 Al Qaeda in Iraq in Custody; Six Children Die in Chicago Apartment Fire; Tropical Storm John Hits Town Hard in Mexico; Andre Agassi's Tearful Farewell

Aired September 03, 2006 - 16:00   ET

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

FREDRICKA WHITFIELD, CNN ANCHOR: Al Qaeda's No. 2 in Iraq is arrested. How will this affect the war on terror there? Also, the energy crush and gas prices on this holiday weekend.
And Lucy's Angel, how a man saw her Katrina horror on CNN and then rushed to her rescue. Plus an emotional farewell from tennis legend Andre Agassi after 21 years on the court. Hello and welcome to CNN LIVE SUNDAY. I'm Fredricka Whitfield. All that and more after this check of the headlines.

They've been tracking him for months. Now U.S. and Iraqi officials say the No. 2 man in al Qaeda in Iraq is in custody. Hamed al-Suaidi was grabbed during a raid on Friday. On another front, NATO says more than 200 Taliban fighters have been killed in southern Afghanistan. The clashes were part of Operation Medusa, which was launched yesterday. NATO says four of its troops were killed.

A candle in an apartment hallway and no smoke detector. That deadly combination is being blamed for the deaths of six kids in Chicago today. Their mother and three other siblings were injured.

Ernesto is gone but it could be a couple of days before people in New York suburbs get their electricity back. Tens of thousands were left without power as remnants of the tropical storm swept through. We update the top stories every 15 minutes on CNN LIVE SUNDAY. Your next update is coming up at 4:15 Eastern.

Iraqi officials think they have taken a big chunk out of a terror group's ability to operate. Hamed al-Suaidi, he is suspected of being the No. 2 man in al Qaeda in Iraq. He was arrested Friday. Our Michael Holmes has more on what's being called a very severe blow to al Qaeda in Iraq.

(BEGIN VIDEOTAPE)

MICHAEL HOLMES, CNN CORRESPONDENT: It was a big day for the national security adviser in Iraq Mowaffak al-Rubaie, telling a news conference that, indeed, the second most senior figure in al Qaeda in Iraq was arrested a few days ago.

He named the man as Hamed al-Suaidi, also known as Abu Humam or Abu Rana and said that he was the man who was deputy to Abu Ayyub al Masri who in turn took over al Qaeda in Iraq after U.S. troops killed Abu Musab al Zarqawi back in June. The arrested suspect was found in a residential home with civilians, women and children, however, he was arrested without any casualties. Why is he significant? Here's a part of the news conference.

MOWAFFAK AL-RUBAIE, IRAQI NATIONAL SECURITY ADVISER: He is the one who is directly responsible for the criminal Hatim al Badri (ph), the mastermind and the bomber of the Samarra shrine. He has implemented the policy of al Qaeda in Iraq and the orders of Abu Musab al Zarqawi in triggering sectarian sedition and violence in Iraq between Sunnis and Shiites.

HOLMES: Now it's important to know that that bombing at the Samarra shrine was not just any incident. This was a holy place and in many ways it was the act that sparked the major sectarian violence that we have seen around Iraq and indeed in Baghdad since.

Now, to put it in context, the insurgency in Iraq is not based around al Qaeda, although al Qaeda is thought responsible for major spectacular attacks that take place but it's really one slice of the picture and number two al Qaeda leaders have been arrested in the past. Indeed, when Abu Musab al Zarqawi was killed, the violence did not stop. Al Qaeda is very much a cellular organization, one leader going does not always have a major impact on activities. Much of the insurgency is very much homegrown.

However, the national security adviser, Mr. al Rubaie saying that this was a major blow for al Qaeda in Iraq. Michael Holmes, CNN, Baghdad.

(END VIDEOTAPE)

WHITFIELD: From inside the original al Qaeda, an invitation to Islam. Osama bin Laden's deputy on videotape, Ayman al-Zawahiri calls on Americans to convert to Islam. Also on the tape, Adan Khadan (ph), a California man wanted by the FBI in connection with possible terrorist threats against the U.S. And coming up in a few minutes, Joseph Cirincione, director of the Center for American Progress. He shares his thoughts on what and who may be influencing Iraq and how Iran is part of the equation.

A Chicago community in shock today as a family deals with a heart-breaking tragedy. Fire swept through their apartment this morning, killing six children. Their mother and three siblings were injured. Regina Waldroup of CLTV has more.

REGINA WALDROUP, CLTV CORRESPONDENT: Hello, Fredricka. As you can imagine the loss of six young lives is devastating to this Chicago community. Meanwhile, Chicago fire officials say this is one of the largest multiple fire fatalities they've seen in the past several years.

(BEGIN VIDEOTAPE)

(Voice over): An array of children's clothing and other belongings litter the ground outside this three flat an Marshfield Avenue. Sunday morning a fast-moving fire claimed the lives of six children who lived in the third floor apartment.

RAYMOND OROZCO, CHICAGO FIRE COMMISSIONER: Obviously, a very tragic day for this family and it is also a difficult day for the Chicago Fire Department.

WALDROUP: Among those identified, three-year-old Kevin Ramirez, 10-year-old Suzette Ramirez, 12-year-old Eric Ramirez, and six-year- old Idaly Ramirez, a three-year-old and 16-year-old have yet to be identified. The fire started just before 12:30. Fire officials say a total of nine children and their mother were in the apartment at the time.

OROZCO: They removed six children from the front room area. There was a total of eight rescues here made by the Chicago Fire Department.

WALDROUP: Quick thinking neighbors also jumped in. One even ran into the building.

UNIDENTIFIED MALE: I told them to grab each end of the blanket and I asked them to drop the children down, but I believe the children was hiding in the closet or something like that, and they just refused to jump.

UNIDENTIFIED MALE: When I went in there, it was fire coming through the entrance of the first floor -- I mean, the third floor. So I ran past the fire and I heard a child yelling from the bedroom to the left, and I ran in the bedroom and I carried the little child out of there.

WALDROUP: The children's mother was taken to the Thorick (ph) Hospital with a three-month-old girl. Hospital officials say they were discharged shortly after being seen in the emergency room. They also say that the mother did not know what happened to her children.

As for preliminary cause, fire officials say a candle was found near the front of the apartment, which did not have electricity and appears to not have any working smoke detectors.

OROZCO: We found that we had working smoke detectors in the common areas, but there was no working smoke detectors in the apartment of origin.

(END VIDEOTAPE)

WALDROUP: Now at this time, we do not know the condition of the three children who did survive the fire -- Fredricka, back to you.

WHITFIELD: Thanks so much Regina and we're turning now to the manhunt for a New York fugitive. Seventy-five more police officers have joined in the search for a prison escapee Ralph "Bucky" Phillips. And the reward for has capture is now up to $225,000. Phillips is suspected in a sniper attack that wounded two state troopers on Thursday. One of those troopers remains in critical condition after doctors amputated a leg yesterday. The other officer has been upgraded from critical to serious condition.

Let's check in now with Bonnie Schneider in the Weather Center where there's still remnants of both Ernesto and John out there.

(WEATHER REPORT)

WHITFIELD: And as Bonnie just reported, Tropical Storm John has been pounding Mexico's Baja Peninsula. Mudslides and flash floods are a real threat. Reporting from the hard-hit town of La Ribera, CNN's Harris Whitbeck.

(BEGIN VIDEOTAPE)

HARRIS WHITBECK, CNN CORRESPONDENT (voice-over): A family cleans up the debris left by Hurricane John in front of its house in the village of La Ribera, in Baja California. It is mostly tree branches.

While they wait for electricity to be reestablished they talk about what happened and about how badly they want things to get back to normal.

"We've already been without work for several days," says this man, "but hopefully tomorrow we can get back to work."

La Ribera is located south of the state capital of Le Pas, it was cut off for several hours after the storm. It suffered some of the worst damage, falling trees, damaged streets, downed power lines.

(On camera): The residents of La Ribera were not expecting the hurricane to hit as hard as it did here, but they were still prepared. This is a town of fishermen, of people who are used to the sea and to the fickleness of the weather.

Louis Sanchez is the local traffic policeman. He patrols the town assessing damage. He says the storm was not supposed to have been so severe.

Other neighbors say it could have been much worse.

"We've already been through tougher storms" says this woman. "Now that roads are reopened I don't think we will suffer too much."

The local city hall is filled with food and water that had been stockpiled before the storm but it will be several days before electricity is restored. Harris Whitbeck, CNN, La Ribera, Baja, California.

(END VIDEOTAPE)

WHITFIELD: The U.N.'s Kofi Annan meets with the president of Iran. Is there any movement on the nuclear issue?

Still more Iraqis killed in violent attacks today. I will speak with a security expert about what's ahead for U.S. leaders dealing with Iraq and Iran.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I think if you want to get some excitement in your life, you ought to become a leader. How do you influence others?

(END VIDEO CLIP)

WHITFIELD: Well this Labor Day weekend you may be asked to rethink your leadership skills. Get some tips from the man who wrote "The One-Minute Manager."

Plus, an emotional day for the man who went from tennis rebel to icon, straight ahead on CNN LIVE SUNDAY.

(COMMERCIAL BREAK)

WHITFIELD: Here are some of the most popular stories on CNN.com. Europe's first mission to the moon ended with a space probe crashing into a lunar hillside. But that's what it was supposed to do. The European space agency uses the probe's three-year voyage to test new technologies like an ion propulsion system.

Four people were killed when two jet boats collided on a lake in southern Oklahoma. Police say they haven't determined the cause of yesterday's accident at Lake Texoma.

Witnesses say a West Virginia man who shot and killed his two sons, then fatally shot himself was not arguing with his children before the shootings. It happened yesterday in the parking lot at Shepherd University in Shepherd's Town. Both sons were students at the university. Police are trying to figure out why the father went on this deadly rampage.

And if you're just joining us, there has been some diplomatic movement within the past few hours regarding Iran's nuclear program. U.N. Secretary General Kofi Annan met with Iran's president this morning. Afterwards, he sounded optimistic a showdown could be averted.

(BEGIN VIDEO CLIP)

KOFI ANNAN, U.N. SECRETARY GENERAL: We also discussed the nuclear issue and on the nuclear issue the president reaffirmed to me Iran's preparedness and determination to negotiate and find a solution to the crisis.

(END VIDEO CLIP)

WHITFIELD: However, Annan says the Iranian leader made it clear he would not halt the nuclear program as a precondition for negotiations. In other words, the uranium enrichment efforts will continue for now.

Iran wants to also be in the business of reteaching history. The country is holding a fall conference on what it calls Holocaust exaggerations. That's prompted the U.N.'s Annan to state clearly that the mass slaughter of Jews by Hitler's Nazis is an undeniable historical fact. Whether you believe in that country's leader's philosophies or not, Iran is getting worldwide attention. But how else might it use that platform? Joining me from Washington now, Joe Cirincione, senior vice president for national security and international policy at the Center for American progress. Good to see you.

JOE CIRINCIONE, CENTER FOR AMERICAN PROGRESS: Nice to be here.

WHITFIELD: All right, well how can Kofi Annan have dialogue with Mahmoud Ahmadinejad, how can he tell whether he is sincere or whether he is indeed boasting or trying to get the world's attention when he talks about whether he will honor resolution 1701 or whether his country will continue with its nuclear ambitions.

CIRINCIONE: Well this of course is the art of diplomacy, dealing with even fiery world leaders like Ahmadinejad and trying to find some compromise, some areas where you can cooperate with them. Annan knows that we need Iran's cooperation in order to stabilize the situation in Lebanon. He knows that he needs to find some compromise with him in order to end or at least to contain Iran's nuclear program.

And in the long run, Iran is going to play a major role in the Persian Gulf. It's going to be critical to stabilization efforts in Afghanistan and Iraq. Iran is a major player, you can't ignore them. That's Annan's mission. It looks like the issue that's working the most is his idea of a prisoner exchange. He's hoping even getting something, a small accomplishment like this between Israel, Lebanon and Hezbollah could lead to a further stability in Lebanon itself. He got Ahmadinejad's promise to cooperate on that prisoner exchange today.

BLITZER: Do you see that Iran is already playing a significant role when it comes to Afghanistan and the stability or lack thereof in Iraq?

CIRINCIONE: You know, we've focused so much on the tensions between the U.S. and Iran, but over the past few years since 9/11, Iran has actually cooperated with the U.S., in U.S. activities in Afghanistan. The Taliban was an enemy of Iran's. They were happy the U.S. came and overthrew this.

Iran does not link the operation in any way with al Qaeda. They see the al Qaeda as trouble makers. They're glad to see the U.S. going after al Qaeda and we did have a significant amount of cooperation on the Iran/Afghan border.

Similarly in Iraq, the U.S. got rid of Saddam Hussein, the man who invaded Iran back from '81 to '88 and caused almost a million casualties in Iran. They were glad to see him go. They're glad to see the majority Shia population get control of Iraq. There is a lot of cooperation that has gone on between the U.S. and Iran, at least tacitly if not actually coordinated at a diplomatic level, more needs to be done.

BLITZER: So if Iran wants no ties where al Qaeda, whether it be inside Iraq or elsewhere, what about Iran's ties in any way to any militants being blamed for some of the sectarian violence in Iraq? Is it fair to start looking at Iran close since there have been so many critics who seem to believe that Iran is playing a hand in that?

CIRINCIONE: You hear this a lot particularly in this political season here at home. I just heard U.S. Senator Rick Santorum earlier today blame Iran for the instability in Iraq. There's really no evidence of that. Instability in Iraq is not in Iran's interest. They do not want to see Iraq fall apart. They don't want to see an independent Kurdistan in Iraq beacuse that might encourage the Kurds in Iran to call for their own independence. Instability in Iraq is not in Iran's pragmatic interest. It's not because they want to help us out. They want to see the Shia come to power legitimately. They're the majority in the Iraqi country. They want to see them exercise control over a stable, calm Iraq which could then become an ally of Iran.

WHITFIELD: Interesting stuff. All right Joe Cirincione, thank you so much, senior vice president for national security and international policy at the Center for American Progress. Long title, but wanted to get it all in there. Thanks so much, have a great holiday weekend.

The Iran debate is also being playing out across Washington today in other ways.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: I'm Elaine Quijano live at the White House. Just two months before congressional midterm elections, President Bush facing sharp criticism from Republicans over his handling of Iraq. I'll have that story coming up.

WHITFIELD: And Andre Agassi make a lasting impression of his own at the U.S. Open. That's straight ahead.

(COMMERCIAL BREAK)

WHITFIELD: An emotional last hurrah for Andre Agassi and well deserved. Less than two hours ago, he was on the course of the U.S. Open, battling a bad back and taking on Germany's Benjamin Becker. Well it turned out to be the last match of his professional career. Larry Smith is here with more on an incredible career of 21 years. And he really is kind of America's darling isn't he on the court?

LARRY SMITH, CNN SPORTS ANCHOR: Yes, he really is. And the transformation we watched him go from the image is everything kid with the rebel look and the rebel ads and everything.

WHITFIELD: Image is everything.

SMITH: And now, what a person, not only in sports but also all the way through. What kind of impact has Andre Agassi had on tennis and even on the sports world in general?

Well when the result of his match was posted on score boards throughout the Billie Jean King National Tennis Center today in New York, the crowds wandering on the ground outside the stadium just fell silent. It's the end of a remarkable era. Agassi one of only five men to complete tennis' grand slam, lost today, as Fred just mentioned, to Benjamin Becker in four sets in third round play, recording a ninth career major title. That was a long shot. The 36-year-old already this weekend received four cortisone shots in his back to try to help out an ailing back. But after a pair of thrilling come-from-behind victories, this week at the open, Agassi bids a tearful good-bye to the game and to his legion of fans.

(BEGIN VIDEO CLIP)

ANDRE AGASSI, TENNIS PLAYER: I was sitting there realizing that I was saying good-bye to everybody out there and they were saying good-bye to me. It was like, just saying good-bye, it's, you know, a necessary evil. And -- but we were getting through it together, and that's amazing.

(END VIDEO CLIP)

SMITH: And there's such a connection with Andre Agassi and especially the crowds in New York. He also said the score board today shows I lost, but it doesn't show how I feel.

WHITFIELD: I know. He was so gracious and I love what he said. He says, "You've given me the shoulders to stand on to reach my dreams." I mean, very unselfish.

SMITH: Yes. He made his first debut in the majors at the U.S. Open back in 1986. Now here he is, 36-years-old. People don't realize he dropped out of school in eighth grade to pursue his tennis career. He went back and took correspondent courses to get his diploma, but since then, his foundation has done countless wonderful things, including starting a charter school in Las Vegas that is getting high marks for the work it is doing in the city of Las Vegas.

WHITFIELD: So the guess is he's going to spend a lot more time, devoting time to that.

SMITH: Well that's the thing right now that makes Andre Agassi so special. We all like to root for those who are just a cut above, who have that will to never give up, to always reach for the top and, even again, be just a champion as we saw him this week in two great matches earlier, especially the Marcos Baghdatis, one of the great matches we have seen in quite a while.

But he's someone who is really going to take that, his pedestal now as a tennis superstar and somebody who is known worldwide and take it and do some very wonderful things. And I think even Andy Roddick said it best before the Open started, "The thing is we have yet to see the best from Andre Agassi."

WHITFIELD: Yes I have a feeling if you liked Andre Agassi before, you love him now.

SMITH: Yes and who knows what he will be doing in five or 10 years from now, off the tennis court for society.

WHITFIELD: That's neat. Well, we'll be watching. Larry, thanks so much. Well here's another name you will recall, an American icon, Bob Mathias, an American hero. He dedicated his life to sports and politics. He first got the world's attention when he was just 17- years-old back in 1948. The decathlete became the youngest Olympic gold medalist in a track and field event. Mathias would later serve as a U.S. Congressman. Well sadly this weekend, the two-time Olympian and good family friend passed away in Fresno, California. Cancer claimed the life, but certainly not his legacy of Bob Mathias. He was 75.

Coming up, defiance from Tehran. The Iranian leader says he has no intention of putting the brakes on the country's nuclear program. Plus on this Labor Day weekend, how to be successful at your job and impress your boss from the best selling author of "The One-Minute Manager." And a success story out of the chaos of Katrina, how one man makes a huge difference for a woman who lost everything.

(COMMERCIAL BREAK)

WHITFIELD: Now in the news, Afghan and NATO forces clash with Taliban militants in Kandahar, Afghanistan. The international coalition says 200 Taliban fighters were killed. Four NATO troops also died, all of them from Canada.

Al Qaeda's second in command in Iraq was arrested. Hamid Juma Faris al-Suaidi was caught during a raid on Friday. U.S. and Iraqi officials say he was responsible for numerous assassinations and bombings including February's attack on a Shiite shrine in Samarra. That bombing triggered an upsurge in sectarian violence.

Back in the U.S. six children were killed today when a fire swept through their Chicago apartment. The children's mother and three other children survived but were injured. Officials suspect a candle started the fire. They say the apartment had been without electricity for a month.

Tropical Storm John hammering Mexico's Baja Peninsula with torrential rains and high winds. So far no deaths are reported. Heavy rains also expected in Southern California and Arizona.

We update the top stories every 15 minutes on CNN LIVE SUNDAY. Your next update is coming up at 4:45 Eastern.

Honoring American workers. That's what Labor Day is all about. But we know on this holiday weekend you are probably trying not to think about your job. Business guru and best selling author Ken Blanchard who wrote the "One Minute Manager" says actually this might be a great opportunity for ways to stand out in the workplace. I asked him how to stay ahead of the curve and be successful.

(BEGIN VIDEOTAPE)

KEN BLANCHARD, AUTHOR, CONSULTANT: I think if you want to get some excitement in your life you ought to become a leader. How do you influence others? How do you make a difference in their life and the organizations you are going to lead? WHITFIELD: So not everybody is born leader. They need a little help along the way. What are the big mistakes that people make when they are in leadership responsibilities whether it be in the workplace or perhaps even at home. They think they have got it down because they are the designated leader.

BLANCHARD: Well, I the biggest mistake is that they don't realize there's two parts of leadership. One is the visionary direction part, which is where are we going, what are the goals, what are we trying to accomplish and the leader has got to take a major role in setting those. And once the goals are clear, now the second part of leadership is how do we get there. That's when you have to philosophically go to the bottom of the pyramid and become the coach, cheerleader, supporter of people as they are the ones accomplishing the goals. So we teach people about vision and direction and implementation.

WHITFIELD: So say you want to be a leader in the form of your own small business and everywhere you turn mom and pop businesses are being gobbled up by the big conglomerate. So what's your outlook on those who want to be that entrepreneur? Someone who wants to lead and organize their own business?

BLANCHARD: Well, I think, first of all, you have to find something that you love to do, that you have energy with, because then you will take the time to be the best. Then you have to find out, OK, how can I make a business out of that? You know, do I want to be a coach? Do I want to be a teacher? Do I have a product that I think people might be interested in?

So find something you are passionate about. And the big issues in running a business and not getting gobbled up is you need good finances. And so you need to have some people that will help you get off the ground. Then you have got to know about managing and leading people.

WHITFIELD: Say you are someone just now entering the work force, yes, you are excited and passionate about what you have chosen to, but somehow you have got to keep the momentum going. Your get into the job place or job market and then suddenly you are kind of disillusioned that, wow, this is a bit harder than I thought. How do you maintain the excitement so that you can excel?

BLANCHARD: Well, I think the best advice I have ever given to people is when you go to a job, find a mentor. Find somebody who is older than you, that has had some experience and ask them if they would be your mentor. Because a lot of times we get a job and it's more difficult than we thought and we don't know where to turn. And so a lot of companies don't set that up. So set it up for yourself.

(END VIDEOTAPE)

WHITIFELD: And a new venture for Blanchard, an on-line executive MBA program at Grand Canyon University, its focus will be on leadership. What's next for Iran? Tehran has made it clear it has no intention of suspending nuclear activities. That set it on a collision course with Washington. White House correspondent Elaine Quijano joins me now with more on the dilemma facing America's policymakers.

Elaine?

QUIJANO: Good afternoon to you, Fredricka. Well, President Bush returned to the White House today from a weekend at Camp David amid some criticism from fellow Republicans this election year over how he's handling Iran.

(BEGIN VIDEOTAPE)

QUIJANO (voice-over): After a face to face meeting in Tehran with Iranian President Mahmoud Ahmadinejad, UN Secretary Kofi Annan walked away empty handed, rebuffed by the president, who will not stop Iran's uranium enrichment activities.

KOFI ANNAN, UN SECRETARY-GENERAL: He indicated again that they do not accept suspension before negotiations but that they are prepare to negotiate.

QUIJANO: Iran insists its nuclear activities are for peaceful purposes and has repeatedly said it wants to talk.

UNIDENTIFIED MALE: The best course of action is to start immediately at the negotiating table and to build up the mutual trust and respect.

QUIJANO: Amid fears that the regime is trying to develop a nuclear weapon, President Bush says Iran must stop its uranium enrichment activities first before any negotiations can begin. And the U.S. has not ruled out sanctions against Iran if it doesn't comply, though Russia and China have balked.

GEORGE W. BUSH, U.S. PRESIDENT: It is time for Iran to make a choice. We have made our choice. We will continue to work closely with our allies to find a diplomatic solution but there must be consequences for Iran's defiance.

(END VIDEOTAPE)

QUIJANO (on camera): Now, President Bush is facing some sharp criticism from fellow Republicans who are in some difficult reelection fights this year. Today Pennsylvania Senator Rick Santorum said he thinks that the administration hasn't been tough enough with Iran and said Iran is going to, quote, "continue to string us along," end quote. And Republican Congressman Chris Shays of Connecticut suggested that the failure to find weapons of mass destruction in Iraq should give the Bush administration reason to consider reestablishing diplomatic ties with Tehran, suggesting that then the United States might have a little clearer picture of what is happening inside Iran.

Fredricka? WHITFIELD: Elaine Quijano at the White House, thanks so much.

A man who was once Iran's president is in the U.S., Mohammad Khatami spoke directly to Muslim Americans in a Chicago suburb last night. He condemned the 9/11 attacks but also pointed fingers at U.S. policy.

(BEGIN VIDEO CLIP)

MOHAMMAD KHATAMI, FORMER IRANIAN PRESIDENT (through translator): Through cooperation and reaching consensus of all of the people of the United States, public opinion can be rescued from the grips of ignorance and blunder, and the domination of arrogant, war-mongering and violence-triggering policies will end.

(END VIDEO CLIP)

WHITFIELD: Khatami said Muslims must, quote, "Forge a new identity that embraces the modern world, tolerates other religions and works toward peace."

Well, today we are focusing on the energy crunch. Why does gas cost so much? We will follow your fuel from the oil fields to the pump.

(COMMERCIAL BREAK)

WHITFIELD: Just under 20 minutes before the hour, here's what's happening right now in the news.

Chicago's fire commissioner believes a candle sparked a deadly blaze last night on the city's north side. Six children ages three to 16, the children's mother and three siblings survived.

In Upstate New York the manhunt intensifies for escaped prisoner Ralph "Bucky" Phillips. Police believe he shot two state troopers on Thursday. One of the troopers had a leg amputated yesterday. Phillips is considered armed and extremely dangerous. The reward for information leading to his capture is now up to $225,000.

In southern Afghanistan the casualties mount in NATO's Operation Medusa campaign against the Taliban. NATO says its troops have killed more than 200 Taliban fighters this weekend. Four Canadian troops were also killed in the clashes near Kandahar.

Iraqi authorities says this man was a deputy commander of al Qaeda in Iraq until his capture two days ago. Hamid al-Suaidi was picked up in a raid on Friday. He's suspected of masterminding February's bombing of a mosque in Samarra. We update the top stories every 15 minutes on CNN LIVE SUNDAY. Your next update is coming up at the top of the hour, 5:00 Eastern.

Let's check in with Bonnie Schneider with some information about activity in the Caribbean.

BONNIE SCHNEIDER, CNN METEOROLOGIST: Well, actually, it's well way out there. This is in the tropics. We are watching the next tropical depression, Tropical Depression Number 6 has formed. This just came in moments ago. This depression is way out there. It's actually many miles away, 15,525 (ph) miles east of the northern Leeward Islands. So it's well out there, It's actually closer to Africa but it is pretty impressive when you look at here our satellite imagery, you can see two areas of convection we're watching.

Right now maximum winds with this depression are at 35 miles per hour. Once they get to 39 miles per hour, this could become a tropical storm and according to the National Hurricane Center in Miami that is likely. So we may have a new tropical storm as early as tonight. We will keep you posted. Fredricka?

WHITFIELD: All right, Bonnie, thank you so much.

Well, even with the recent slide of gas prices in the past few weeks, it still is not cheap. CNN's Becky Anderson investigates where the costs add up from the pipe to the pump.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Much of the terrain we are driving is like this one, mountains and fjords. No place on earth that looks like some of the roads we are driving.

BECKY ANDERSON, CNN CORRESPONDENT (voice-over): Nils Biani Leftfar (ph) drives 1,500 miles every week through the Norwegian fields delivering his precious cargo of gasoline and diesel.

UNIDENTIFIED MALE: We are working approximately 15 hours a day. A long day. That's to get one week off.

ANDERSON: Those long days are reflected in the price. It costs me almost eight dollars a gallon to fill up here. A price driven up like everywhere around the world by this year's high oil price. I am here to find out what I am paying for.

Forgive the orange suit, it's regulation safety gear for anyone going offshore. An hour into the flight, you see down below these vast steel structures which punctuate this part of the North Sea. It's the infrastructure of oil which has transformed Norway from maritime nation to oil heavyweight. It's now the third largest exporter of oil in the world after Russia and Saudi Arabia. These platforms are run by Norwegian oil company Statoil.

(on camera): This is one of the biggest oil fields in the North Sea, below me, millions and millions of barrels oil. This platform produces 70,000 barrels of oil a day. We are here to track the trail and the cost of just one barrel from here to a petrol station.

(voice-over): Workers drill to reach new pockets of oil thousands of feet below the sea bed. Below this platform, some 100 well shafts crisscross their way into the earth's crust.

Every single one of these well heads is pumping oil directly from the seabed a mile and a half below here. Now if you touch them, they really are hot. This is the stuff that's literally burning a hole in your pocket.

Statoil is targeting total production costs of under $4.00 a barrel in 2007. With oil prices hovering around the $70 a barrel mark, this platform is hugely profitable even though the underground oil reserves here are running out.

GISLE STJERN, PLATFORM MANAGER, STATOIL: With the oil prices today, we are earning more money per day today than we did back in '94, when it was under peak production.

ANDERSON: Tankers come in three times a week, carrying off 800,000 barrels at the time. Behind the scenes are the traders buying the physical crude as cheaply as possible, searching out the best deal on transport and the best place to sell. Making sure that each tanker reaches its delivery appointment on time whatever the North Sea's mood.

Much comes here to the Monkstad (ph) refinery on Norway's west coast, Europe's second largest oil port after Rotterdam.

(on camera): I am standing in front of what is effectively a plug sealing the entrance to a vast underground cavern where much of the product here at Monkstad is stored.

(voice-over): Above ground, bicycles are the best way to get around this jungle of multicolored tubing. What the eye can't see are the chemical processes going on inside, or the refined product that pours out into the storage tanks, jet fuel, gasoline or diesel ready for a hungry market.

The average refining cost per barrel is around $5 a barrel. But like anything, this is about supply and demand.

Hurricane Katrina last year knocked out a huge chunk of global refining capacity. So today's returns are high.

PER LEROEY, PRODUCTION MANAGER, STATOIL: Three or four dollars a barrel. That's the normal refining margins, these days we are facing $10 to $12 a barrel. That's just heaven for us.

ANDERSON: The average cost of a barrel of oil last year was $50, so it costs the world's producers around $4 a barrel to extract the oil, another $2.50 to transport it. Five more to refine and another seven to bring it to market, who gets all the rest? Oil analysts say it's not just the oil companies.

LEO DROLLAS, CENTRE FOR GLOBAL ENERGY STUDIES: The main beneficiaries of high prices are the producing country's government and, of course, also another big chunk is taken by governments in the consuming countries via taxes.

With the oil companies getting, I'd say, probably as a profit in their own coffers would be around $3, $4, $5 a barrel on average.

ANDERSON: Statoil gives 78 percent of its offshore earning into a government which siphons those oil profits into a special petroleum fund to use when the oil runs out. It's now the biggest pension fund in the world and allowed Norway to live comfortably day-to-day off the interest. An example to the newly oil rich how they, too, can make their oils last, Becky Anderson, CNN, Bergen, in Norway.

(END VIDEOTAPE)

WHITFIELD: Next hour as part of our energy crunch coverage, we will take a look at how much the price of gas may fall in the coming months.

Still ahead on CNN LIVE SUNDAY, meet Steve, an angel after Hurricane Katrina.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We got a hold of Lucy and called her up and I said we're coming down and we're going to take care of your house.

(END VIDEO CLIP)

WHITFIELD: How that man turned one woman's horrible situation into something heaven-sent.

SCHNEIDER: I'm CNN meteorologist Bonnie Schneider with a look at your allergy report for today. As we check things out across the country you will find some areas of low-risk for allergy suffers occurring right now over the Southeast, otherwise we're looking at a high concentration of air pollution and pollen for a good portion of the nation's mid section back to the Rocky Mountain States. That's a look at your allergy report for Sunday. I'm meteorologist Bonnie Schneider.

(COMMERCIAL BREAK)

WHITFIELD: We want to update you on a story we first told you about on CNN's AMERICAN MORNING. A Mississippi woman lost almost everything when Hurricane Katrina destroyed her house. Then her guardian angel swept in. CNN's Kathleen Koch tells us about the happy ending.

(BEGIN VIDEOTAPE)

KATHLEEN KOCH, CNN CORRESPONDENT (voice-over): A shell of a house. It's all Lucy Williams had left after Hurricane Katrina's storm surge swept through her Biloxi, Mississippi neighborhood. She salvaged one dining room chair.

LUCY WILLIAMS, KATRINA VICTIM: I'm going to keep it to remind me.

KOCH: Of what you used to have?

When we caught up with her in February, Williams had no money to start over since the school where she had worked as a janitor had been destroyed.

WILLIAMS: I've been praying. I've been praying that somebody come in and see it and want to help me.

KOCH: Someone did.

WILLIAMS: That's the answer right there.

UNIDENTIFIED FEMALE: That's the angel.

WILLIAMS: That's the angel right there.

KOCH: Steve Kesler (ph) in Warsaw, Indiana, saw her story on CNN. Years before becoming a successful businessman, he, too, had been a janitor.

STEVE KESSLER, BUSINESSMAN: We got a hold of Lucy and called her up. I said, we're coming down and we're going to take care of your house.

WILLIAMS: He came right down and just went to work. And he just like an angel that the Lord just sent down to bless me.

KOCH: Over the next six months, Kessler flew down crews from Indiana to clear and grade Williams' lot. Workers from Biloxi joined them in building a beautiful new three-bedroom home.

WILLIAMS: And here is my ding room area. This is my kitchen area.

KESSLER: Obviously, we tried to do it right, and Lucy was real helpful. She was the interior decorator. I don't know what the dollars was. I haven't really kept track. We'll look at that later on.

KOCH: That doesn't matter to you?

KESSLER: No.

WILLIAMS: I just have a smile on my face that I can't take off. I am so happy. He is one wonderful man. I just get up every morning and thank the lord.

KOCH: Williams plans to move into the house next week with her husband and one of her 13 grandchildren. Kessler believes the Gulf Coast recovery would be further along if more Americans followed his lead.

KESSLER: It's really not that difficult. You just have to jump in and help the best you can.

I knew this is what I was supposed to do and we did it. Hey, it will be a great storytelling from here on out.

KOCH: A Katrina story with a happy ending.

You guys are the best. Thank you, Steve.

Kathleen Koch, CNN, Biloxi, Mississippi. (END VIDEOTAPE)

WHITFIELD: Well, straight ahead on the next hour of CNN, you will see how some are providing a way out for women who have been working the streets as prostitutes.

(COMMERCIAL BREAK)

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