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Feds: Holes in tank likely factor in W.Va. leak

Written By Unknown on Kamis, 17 Juli 2014 | 00.32

Federal investigators say holes in a storage tank floor likely allowed chemicals to seep out and contaminate West Virginia's biggest drinking water supply in January.

They found a similar hole in the floor of another Freedom Industries tank that held the spilled chemical.

The Chemical Safety Board says corrosion from water pooling inside the leaky tank likely caused the holes. Holes in the tank's roof likely let corrosion-inducing water into the tank.

The Chemical Safety Board provided the update in a report. Officials also were in Charleston Wednesday talking about the ongoing investigation.

The board said it couldn't find records of tank inspections before the January spill. It is unclear how often or rigorously inspections occurred.

The spill spurred a tap-water ban for 300,000 people for days.


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BMW recalls 1.6M 3-Series cars for air bag problem

DETROIT — BMW is expanding a recall of its most popular models to fix an air bag problem that is hitting much of the global auto industry.

The German automaker says it will recall 1.6 million 3-Series cars from model years 2000 to 2006 across the world, including 574,000 in the U.S.

The company said Wednesday that it's a precaution because other automakers using similar systems have reported problems.

Air bag inflators in systems made by Takata Corp. can rupture. If that happens, the bags might not work properly, and shards could fly out and cause injury.

The problem is responsible for millions of recalled vehicles during the past few years made by manufacturers such as Chrysler, Ford, Honda, Mazda, Nissan and Toyota. The recalls have mostly been of vehicles in states with hot and humid weather.

BMW said it has no reports of problems in its vehicles. Dealers will replace the passenger-side front air bags. The new recall excludes 42,000 BMWs recalled in May 2013 for the same problem. The company says it is recalling all vehicles equipped with potentially faulty air bag systems regardless of where they were sold.

In June, the U.S. National Highway Traffic Safety Administration began investigating air bags made by Takata, a Tokyo-based supplier of seat belts, air bags, steering wheels and other auto parts.

The agency said it received six reports of air bags rupturing in Florida and Puerto Rico. Three people were injured in those cases. It had estimated 1.1 million vehicles in the U.S. could be affected, but the total is likely to climb.

The government says it wanted to act quickly in warm states while it continues to investigate the issue.

"Based on the limited data available at this time, NHTSA supports efforts by automakers to address the immediate risk in areas that have consistently hot, humid conditions over extended periods of time," the agency said in a statement.

Takata said in a statement Wednesday that it is supporting the NHTSA investigation and its customers with technical analysis and replacement parts. "Our objective is to do all that is possible to ensure the safety and well-being of the public," the statement said.


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California hearing set on tough oil refinery rules

LOS ANGELES — The Environmental Protection Agency is coming to one of the nation's largest petroleum-producing areas to hold public hearings on a proposal aimed at reducing toxic air pollution from California to Texas through tough new controls on oil refineries.

The daylong hearing set for Wednesday will be held at a community center in Wilmington, a blue-collar section of Los Angeles that is dotted by more than 6,000 oil-pumping rigs and is home to three of California's major oil refineries.

The 9-square-mile area with 53,000 residents also includes the third-largest oil field in the contiguous United States.

To be discussed is an 870-page proposal that would order the petroleum industry to adopt new technology to better monitor benzene emissions, upgrade storage tank emission controls and ensure waste gases are properly destroyed.

Operators would also have to make the results of their monitoring publicly available.

EPA officials say the requirements would reduce toxic air emissions from refineries by an estimated 5,600 tons a year.

Environmentalists say the restrictions are needed to safeguard public health. Industry officials counter that the measures are unnecessary.

The proposal came from the resolution of a lawsuit brought in 2012 by the environmental groups Earthjustice and Environmental Integrity Project on behalf of people directly affected by emissions from refineries in Louisiana, Texas and California.

The action accused the EPA of shirking its responsibility under the Clean Air Act by neglecting to review and possibly revise refinery emission standards every three years. The EPA has not implemented new emission standards since 1995.

Earthjustice also says blacks and Hispanics are disproportionately affected by toxic emissions because they tend to live near refineries in greater numbers than whites. Wilmington is more than 85 percent Hispanic.

The EPA plans a second hearing on the proposed rule changes in Houston later this year, as well as a 60-day period for public comment before taking any action.


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CSX optimistic long-term but predicts flat 3Q

OMAHA, Neb. — CSX is optimistic about its long-term performance, but the railroad's profit during this quarter will likely be relatively flat.

The company discussed its second-quarter results Wednesday after edging out Wall Street profit expectations.

CSX saw a surge in demand, particularly for hauling coal and crude oil, at the same time that it was attempting to clear a backlog of shipments delayed by severe winter weather.

Those frigid temperatures led to a 6 percent increase in coal shipments because utilities in the Northeast had a smaller window in which to ship coal over the Great Lakes. That's encouraging for the railroad because it signals fewer utilities are switching power plants from coal to natural gas, which can be shipped through pipelines.

"These results are evidence of both broad-based economic momentum across most markets, and a transition in the energy markets that is largely behind us," said CEO and Chairman Michael Ward.

CSX expects volume to continue growing, and it's investing an additional $100 million in equipment to handle the load. The company expects only modest profit growth this year with most of that coming in the fourth quarter.

The railroad expects that its third-quarter profit will be in line with the 45 cents per share it delivered last year. That, however, is 3 cents shy of what analysts surveyed by FactSet were looking for, and shares slipped 6 cents to $31.09 in midday trading Wednesday.

CSX said Tuesday its second-quarter profit improved 2 percent to $529 million, or 53 cents per share, from $521 million, or 51 cents per share, last year.

The railroad is now hauling about 20 trainloads a week of crude oil to refineries on the East Coast. Those shipments of oil from the Bakken region of North Dakota and Montana have been a bright spot for railroads, but new safety regulations currently being pieced together could prove costly.

Federal regulators are expected to propose new rules for tank cars sometime later this year, and the Transportation Department has been developing other rules to address safety concerns after several fiery rail accidents involving crude oil.

Ward said he is excited about the prospect of new regulations calling for the railroad tank cars hauling crude oil to be redesigned and strengthened, but he's worried about the possibility of a 30 mph speed limit being imposed on trains carrying crude oil.

"That would be severely limit our ability be to provide reliable freight service for customers and to support the timely, efficient passenger or commuter service," Ward said.

Railroads already have voluntarily lowered speeds from 50 mph to 40 mph in urban areas.

CSX Corp., based in Jacksonville, Florida, operates more than 21,000 miles of track in 23 Eastern states and two Canadian provinces. It is the first major railroad to release results.

Norfolk Southern will report earnings next Wednesday, and Union Pacific will release its quarterly earnings report next Thursday.

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Follow Josh Funk online at www.twitter.com/funkwrite


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Museum announces more donors in Detroit bankruptcy

DETROIT — The Detroit Institute of Arts says it is just 20 percent shy of its goal to raise $100 million to prevent the sale of art in Detroit's bankruptcy and help city pensioners.

The museum made the announcement Wednesday while disclosing nearly $27 million in new donations from a group of companies and foundations, including $10 million from Roger Penske and Penske Corp.

It says it has total pledges so far of about $80 million. The state of Michigan, the museum and foundations have together agreed to give $816 million to the so-called grand bargain.

It's all part of Detroit's bankruptcy restructuring plan. The money will be available only if retirees and city workers vote in favor of pension cuts. The results will be announced Monday.


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Airbus A380s tested over air leak problems

PARIS — Airbus has advised airliners to test noisy doors on the world's largest passenger airliner, the A380, after identifying a problem with the door seal that could lead to a fall in the cabin pressure.

The company said Wednesday that it's assessed noisy doors on some aircraft, following an air leak on a Singapore Airlines flight in January that caused the cabin pressure to drop, and found 10 percent of those tested needed reinforcing.

Airbus spokesman Justin Dubon said the company had "identified and understood the root cause of the A380 troubles" and that they were related to the door seal.

Dubon said Airbus would fix problems found by airlines.

The door, he insisted, "can't open midflight."


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What happens to your online accounts when you die?

WASHINGTON — When you die, should your loved ones have access to your Facebook, Gmail and other online accounts?

A group of influential lawyers says yes, unless you specify otherwise in a will. The Uniform Law Commission, whose members are appointed by state governments to help standardize state laws, was expected to endorse a plan Wednesday to automatically give loved ones access to — but not control of — all digital accounts unless otherwise specified.

To become law in a state, the legislation would have to be adopted by the state's legislature. But if it does, designating such access could become an important tool in estate planning, allowing people to decide which accounts should die when they do.

The plan is likely to frustrate some privacy advocates, who say people shouldn't have to draft a will to keep their mom from reviewing their online dating profile or a spouse from reading every email they ever wrote.

"This is something most people don't think of until they are faced with it. They have no idea what is about to be lost," said Karen Williams of Beaverton, Oregon, who sued Facebook for access to her 22-year-old son Loren's account after he died in a 2005 motorcycle accident.

The question of what to do with one's "digital assets" is as big as America's electronic footprint. Grieving relatives want access for sentimental reasons, and to settle financial issues. A person's online musings, photos and videos — such as a popular cooking blog or a gaming avatar that has acquired a certain status online — also can be worth money. Imagine the trove of digital files being amassed by someone of historical value — say former President Bill Clinton or musician Bob Dylan — and what those files might fetch on an auction block.

"Our email accounts are our filing cabinets these days," said Suzanne Brown Walsh, a Cummings & Lockwood attorney who chaired the drafting committee on the bill. But "if you need access to an email account, in most states you wouldn't get it."

Ginger McCall, associate director of the Electronic Privacy Information Center in Washington, said a judge's approval should be needed to protect the privacy of both the owners of accounts and the people who communicate with them.

"The digital world is a different world" than offline, McCall said. "No one would keep 10 years of every communication they ever had with dozens or even hundreds of other people under their bed."

Most people assume they can decide what happens by sharing certain passwords with a trusted family member, or even making those passwords part of their will. But in addition to potentially exposing passwords when a will becomes public record, anti-hacking laws and most company's "terms of service" agreements prohibit anyone from accessing an account that isn't theirs. That means loved ones technically become criminals if they log on to a dead person's account.

Several tech providers have come up with their own solutions. Facebook, for example, will "memorialize" accounts by allowing already confirmed friends to continue to view photos and old posts. Google, which runs Gmail, YouTube and Picasa Web Albums, offers its own version: If a person doesn't log on after a while, their accounts can be deleted or shared with a designated person. Yahoo users agree when signing up that their account expires when they do.

But the courts aren't convinced that a company supplying the technology should get to decide what happens to a person's digital assets. In 2005, a Michigan probate judge ordered Yahoo to hand over the emails of a Marine killed in Iraq after his parents argued that their son would have wanted to share them. Likewise, a court eventually granted Williams access to her son's Facebook account, although she says the communications appeared to be redacted.

Enter the Uniform Law Commission. According to a draft of the proposal, the personal representative of the deceased, such as the executor of a will, would get access to — but not control of — a person's digital files so long as the deceased doesn't prohibit it in the will. The law would trump access rules outlined by a company's terms of service agreement, although the representative would still have to abide by other rules including copyright laws.

That means, for example, a widow can read her deceased husband's emails but can't send emails from that account. And a person can access music or video downloads, but not copy the files if doing so violates licensing agreements.

Williams said she supports letting people decide in their wills whether accounts should be kept from family members.

"I could understand where some people don't want to share everything," she said in a phone interview this week. "But to us, losing him (our son) unexpectedly, anything he touched became so valuable to us." And "if we were still in the era of keeping a shoebox full of letters, that would have been part of the estate, and we wouldn't have thought anything of it."

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Follow Anne Flaherty on Twitter: https://twitter.com/AnneKFlaherty


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Maine lobster fishing season off to slow start

ROCKLAND, Maine — The cold winter is still being felt in the waters off Maine, where the nation's largest lobster fishery is off to a slow start.

The season typically picks up after the bulk of the lobster population sheds its shells and reaches legal harvesting size. That occurred in late June last year and mid-June in 2012, but state officials and lobstermen say it hasn't happened yet this year, leading to small catches.

State lobster biologist Carl Wilson said the cold winter and spring may have held back molting. Some lobstermen and buyers are reporting catches half the size they saw at this time last year.

Molting could start happening "any day now," Wilson said, adding that this year's molt appears similar to what the state typically experienced 10 years ago. The last two years — which brought record catches of more than 125 million pounds of lobster each — were seasons that featured an early molt, he said.

Wilson and lobstermen said they expect the season — which they still expect to be a strong one — to take off after shedding.

"The trend has been earlier and earlier each year," Wilson said. "It's not when they start, it's where they end up."

Lobsters molt so they can grow into new, larger shells, often shedding 25 or more times in the first five to seven years of life. After that, adult males molt about once per year and females once every two years. They can be legally harvested in Maine once their carapace reaches 3 1/4 inches long. A recently molted lobster, which has a soft shell, is typically called a "shedder" by Maine lobstermen and savvy consumers.

The state's lobster industry, which accounted for 85 percent of the nation's catch in 2012, has boomed, topping a record $364 million in 2013. The abundance of lobsters has sparked tensions between the industry players in the U.S. and Canada, where Canadian fishermen blockaded truckloads of Maine lobsters from processing plants in 2012 because of falling wholesale prices.

David Cousins, president of the Maine Lobstermen's Association and a South Thomaston lobsterman, said lobstermen expect shedding to pick up and catches to escalate at the end of this month, if not the end of the week. He said the slow season indicates that Maine lobster are "back on the old time clock" of shedding later in the summer.

Rockland lobster dealer Jamie Steeves said he also expects the season to pick up soon, but he added the slow start has been a pain for an industry that grew accustomed to early starts and huge catches in 2012 and 2013. However, he said, it's not time to panic.

"Lobsters will take care of themselves," he said. "It's going to be a normal year."

Prices of lobster are up slightly from last year amid the decline in catch, Maine Import Export Lobster Dealers' Association's President Tim Harkins said. The value of last year's lobster fishery was $2.89 per pound, the second lowest figure in the past 18 years.

"This is more representative of a traditional lobstering season," Harkins said. "The lobsters will come."


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Commercial shipment arrives at space station

CAPE CANAVERAL, Fla. — The International Space Station accepted a fresh delivery of goods Wednesday.

A private cargo ship launched three days ago from Virginia arrived at the orbiting complex a little after 6:30 a.m. EDT. The station's commander, Steven Swanson, used a giant robot arm to grab onto the Cygnus capsule and its precious load as the craft zoomed 260 miles above northern Libya; the vast expanse of sand provided a backdrop.

"I think everybody's breathing again," Mission Control radioed. "We felt like we were up there with you."

Two hours later, the Cygnus was bolted to the space station for a monthlong visit.

It's the third space station shipment for Orbital Sciences Corp. NASA is paying Orbital Sciences as well as the SpaceX company to haul up supplies.

The Cygnus contains more than 3,000 pounds of food, science experiments, mini-satellites and equipment, as well as outfits designed to resist bacteria and odor. The new gym clothes should keep the exercising astronauts smelling a lot better.

Swanson paid tribute to the late astronaut Janice Voss, who once worked for Orbital Sciences and made five space shuttle flights. The company named this newest Cygnus in her honor.

"We now have a seventh crew member," Swanson said. "Welcome aboard the ISS, Janice."

Mission Control also praised Voss, who died of cancer in 2012 at age 55. She never made it to the space station during her shuttle travels.

Once emptied, the capsule will be loaded with trash and set loose in mid-August for a fiery re-entry.

The Virginia-based Orbital Sciences made its first space station delivery last September. The second occurred in January.

___

Online:

NASA: http://www.nasa.gov/mission_pages/station/main/index.html

Orbital Sciences: https://www.orbital.com/NewsInfo/MissionUpdates/Orb-2/


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US stocks up in afternoon trading on earnings news

Strong company earnings helped edge U.S. stocks higher in afternoon trading Wednesday, on pace to bounce back from a mixed finish a day earlier. Investors also welcomed news that Time Warner received a takeover offer from Twenty-First Century Fox, the latest in a wave of corporate deal news this year.

KEEPING SCORE: The Dow Jones industrial average rose 63 points, or 0.4 percent, to 17,124 as of 1:22 p.m. Eastern time. The Standard & Poor's 500 rose six points, or 0.4 percent, to 1,980. The Nasdaq composite added 16 points, or 0.4 percent, to 4,432.

THE QUOTE: "We've seen some pretty good earnings reports across different sectors," said Dave Roda, regional chief investment officer for Wells Fargo Private Bank in the Southeast. "We're seeing a lot of (corporate deals), we're seeing a lot of share buyback announcements, things that really do help prop up markets."

MURDOCH BID: Time Warner soared 16.8 percent after Rupert Murdoch's Twenty-First Century Fox disclosed it made a bid for the media giant last month. Fox said Time Warner rejected its offer. The New York Times is reporting that that bid totaled $80 billion, or $85 in stock and cash for each Time Warner share. Time Warner added $11.90 to $82.91, while Twenty-First Century Fox fell $1.38, or 3.9 percent, to $33.81.

WHEELIN' AND DEALIN': The combination of cheap financing and a tough global economy has made acquisitions an attractive option for companies to expand their business, spurring a large number of corporate deals this year. Fox's proposed bid for Time Warner is a continuation of the nearly record amount of mergers and acquisitions going on this year, said David Chalupnik, head of equities at Nuveen Asset Management.

"Companies are looking at 'how do we grow in this low-growth environment?' and they're turning to M&A," he said.

APPLE DEAL: Apple and IBM rose after the former rivals announced late Tuesday that they will work on mobile applications together in a bid to sell more iPhones and iPads to corporate customers. Apple rose 67 cents, or 0.7 percent, to $95.99. IBM added $4.67, or 2.5 percent, to $193.16.

INTEL SURGE: Intel rose $2.31, or 7.3 percent, to $34.02. The chipmaker reported late Tuesday that earnings jumped 40 percent in the latest quarter, beating expectations, as companies picked up the pace of office PC replacement.

BUILDING CONFIDENCE: The National Association of Home Builders/Wells Fargo builder sentiment index released Wednesday rose this month to the highest level since January. Builders said they were more optimistic about selling homes in the second half of the year. Homebuilders' growing confidence in the housing market comes as U.S. sales of new homes have picked up in recent months. The report sent shares of homebuilders mostly higher, led by M/I Homes. The stock rose 94 cents, or 4.1 percent, to 23.85.

BANK WOES: Bank of America fell 29 cents, or 1.8 percent, to $15.52 after reporting second quarter earnings that were hit by higher litigation expenses. The Charlotte, North Carolina-based bank earned 19 cents per share compared with 32 cents a year ago.

STILL STRUGGLING: Yahoo tumbled 4.6 percent after the Internet pioneer reported late Wednesday that its second-quarter earnings and revenue declined. The company's revenue forecast for the current quarter fell short of Wall Street's expectations. Yahoo's display advertising sales have slumped amid competition from Google and Facebook. The stock slid $1.64 to $33.97.

SECTOR WATCH: Eight of the 10 sectors in the S&P 500 rose, led by technology stocks. Health care lagged the most.

BONDS AND OIL: The yield on the 10-year Treasury note slipped to 2.53 percent from 2.55 percent late Tuesday. Benchmark U.S. crude for August delivery rose $1.30 at $101.26 a barrel in electronic trading on the New York Mercantile Exchange.

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AP Business Writer Bernard Condon contributed to this story.


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