2nd UPDATE: Rig Workers Cite Safety Issues,Criticize Transocean

Two Transocean Ltd. (RIG) workers who were aboard the Deepwater Horizon oil rig when it exploded told a U.S. House of Representatives committee Thursday that there were safety issues with the rig before the disaster.

The father of a worker killed on the rig, meanwhile, urged lawmakers to allow the families of the 11 workers who died to sue the responsible companies for punitive damages.

In testimony before the House Judiciary Committee, Douglas Harold Brown, the chief mechanic and acting second engineer on the rig, said Transocean, the rig's operator, had reduced the number of crew members in the engine room from six to three, which put rig personnel behind in completing their preventative maintenance. One worker was eventually added back but "that still left us two people short," Brown said.

"I and others complained that we needed more help," he said, adding that the company's response always was, "We'll see what we can do."

Brown said there was chaos on the rig following the explosion: "People were crying and screaming that they did not want to die."

He said he suffered leg and head injuries and was also suffering from post-traumatic stress disorder, with nightmares and flashbacks.

In his separate written testimony, Brown said he was treated at a local hospital and then taken to a hotel where, he said, "I was then immediately taken to a room and interrogated by two lawyers from Transocean in front of a court reporter."

Stephen Stone, a general laborer on the rig, told the committee that the blowout of the well "was hardly the first thing to go wrong."

He said the rig employees had to pump down a heavy-duty sealant compound four times in 20 days to seal cracks in the underground formation.

Stone said after the blast a Transocean representative asked him to sign a document saying he was not injured in order to obtain $5,000 for the loss of his personal possessions.

"I never would have expected for my company to treat me like a criminal after I had survived such a disaster by making me submit to a drug test, and then try to tempt or trick me into giving up my legal rights by signing forms without a lawyer present," he said.

Rachel Clingman, the acting co-general counsel for Transocean, told lawmakers, "No employee has been asked to, or has, signed away their legal rights."

The father of Gordon L. Jones, a M-I Swaco mud engineer who was killed in the blast, said it was offensive that current law only allowed the victims' families to recover money from the companies for the economic damages they suffered, such as loss of income.

"Payment of punitive damages by wrongdoers is the only way they may learn," Keith D. Jones said, his voice quivering with emotion.

"If you want these companies...to make every effort to make sure their employees don't act as these did, putting American lives at risk, you must make certain that they are exposed to pain in the only place they can feel it--their bank accounts."

Thursday's hearing, which focused on legal liability issues surrounding the spill, featured testimony from 11 witnesses, including representatives from Transocean, BP PLC (BP, BP.LN), Halliburton Co. (HAL) and Cameron International Corp. (CAM).

Darryl Willis, vice president of resources for BP America reiterated the company's position that it would pay all legitimate claims and wouldn't seek to limit its obligations by invoking a $75 million liability cap under the Oil Pollution Act.

William Lemmer, general counsel of Cameron International, the maker of a safety device that was supposed to prevent a well blowout, said it was difficult to talk about liability because there were no factual conclusions yet on how the incident occurred.

Lemmer said the company's blowout preventers "have a very long history of reliable performance."

-By Brent Kendall, Dow Jones Newswires; 202-862-9222; brent.kendall@dowjones.com

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