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102-612: Deepwater Horizon was an ultra-deepwater, dynamically positioned , semi-submersible offshore drilling rig owned by Transocean and operated by the BP company. On April 20, 2010, while drilling in the Gulf of Mexico at the Macondo Prospect , a blowout caused an explosion on the rig that killed 11 crewmen and ignited a fireball visible from 40 miles (64 km) away. The fire was inextinguishable and, two days later, on April 22,

204-528: A Ponzi scheme because she was the firm's compliance attorney. The investigation was closed, and Swanson subsequently left the SEC, and married Shana Madoff. Approximately 45 percent of institutional investors thought that better oversight by the SEC could have prevented the Madoff fraud. Harry Markopolos complained to the SEC's Boston office in 2000, telling the SEC staff they should investigate Madoff because it

306-466: A civil action in a U.S. District Court , or an administrative proceeding which is heard by an independent administrative law judge (ALJ). The SEC does not have criminal authority but may refer matters to state and federal prosecutors. The Economic and Risk Analysis Division (DERA) was created in September 2009 to integrate financial economics and rigorous data analytics into the core mission of

408-411: A mathematical model of the vessel that includes information pertaining to the wind and current drag of the vessel and the location of the thrusters. This knowledge, combined with the sensor information, allows the computer to calculate the required steering angle and thruster output for each thruster. This allows operations at sea where mooring or anchoring is not feasible due to deep water, congestion on

510-508: A "pending" status on 197 of the 312 recommendations made in audit reports. Some of the recommendations included imposing disciplinary action on SEC employees who receive improper gifts or other favors from financial companies, and investigating and reporting the causes of the failures to detect the Madoff ponzi scheme. In a 2011 article by Matt Taibbi in Rolling Stone , former SEC employees were interviewed and commented negatively on

612-423: A 21 in (530 mm) outside diameter marine riser . Deepwater Horizon was the second semi-submersible rig constructed of a class of two, although Deepwater Nautilus , its predecessor, is not dynamically positioned. The rig was 396 by 256 ft (121 by 78 m) and capable of operating in waters as deep as 8,000 feet (2,400 m), to a maximum drill depth of 30,000 ft (9,100 m). In 2010 it

714-449: A DP operator the following path should be followed: When the watchkeeping is done on a Class 1 DP ship, a limited certificate will be issued; otherwise a full certificate will be issued. The DP training and certification scheme is operated by The Nautical Institute (NI). The NI issue logbooks to trainees, they accredit training centres and control the issuance of certification. With ever more DP ships and with increasing manpower demands,

816-565: A clear-cut set of deadlines, rules and guidelines. The SEC succeeded; Kennedy reassured the American business community that they would no longer be deceived and tricked and taken advantage of by Wall Street. He became a cheerleader for ordinary investors to return to the market and enable the economy to grow again. Later SEC commissioners and chairmen include William O. Douglas , Jerome Frank , and William J. Casey . Since 1994, most registration statements (and associated materials) filed with

918-412: A drift off caused by insufficient thrust, or a drive off caused by inappropriate thrust. The basic response with a closed bell is similar to wet bell, but after stowing umbilicals, the hatch will be sealed so that internal pressure can be retained. The bell will be recovered as rapidly as possible in a red alert, and may be recovered if there is doubt that a yellow alert will be downgraded. Redundancy

1020-523: A focus for investigations of the explosion on the rig that month. Deepwater Horizon was built for R&B Falcon (which later became part of Transocean ) by Hyundai Heavy Industries in Ulsan , South Korea. Construction started in December 1998, the keel was laid on 21 March 2000, and the rig was delivered on 23 February 2001, after the acquisition of R&B Falcon by Transocean. Until 29 December 2004

1122-472: A growing set of unique documents called TECHOP's address specific topics of significant interest and impact. Conference papers are available for download by the public, providing the most comprehensive single source of DP industry technical papers available anywhere. The DP Guidance documents published by the MTS DP Committee are designed to disseminate the knowledge, methods and unique tools to aid

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1224-483: A large percentage of legal claims against them by paying $ 1.1 billion into a trust by way of three installments during two years. On 4 September 2014, U.S. District Judge Carl Barbier ruled BP was guilty of gross negligence and willful misconduct by the Clean Water Act (CWA). He described BP's actions as "reckless", while he said Transocean's and Halliburton's actions were "negligent". He apportioned 67% of

1326-519: A measure to reduce volatility in turbulent markets. The SEC investigated cases involving individuals attempting to manipulate the market by passing false rumors about certain financial institutions. The commission has also investigated trading irregularities and abusive short-selling practices. Hedge fund managers, broker-dealers, and institutional investors were also asked to disclose under oath certain information pertaining to their positions in credit default swaps . The commission also negotiated

1428-487: A meeting at the SEC in which top staff discussed refusing to admit the destruction had taken place, because it was possibly illegal . Iowa Republican Senator Charles Grassley , among others, took note of Flynn's call for protection as a whistleblower, and the story of the agency's document-handling procedures. The SEC issued a statement defending its procedures. NPR quoted University of Denver Sturm College of Law professor Jay Brown as saying: "My initial take on this

1530-528: A more flexible set-up and is better able to handle the large changes in power demand, typical for DP operations. These fluctuations may be suitable for hybrid operation . An LNG -powered platform supply vessel started operation in 2016 with a 653 kWh/1600 kW battery acting as spinning reserve during DP2, saving 15-30% fuel. The 154-meter North Sea Giant has combined 3 powerpacks, switchboards and 2 MWh batteries to operate in DP3 using only one engine, keeping

1632-478: A narrative account, called the " management discussion and analysis " (MD&A), that outlines the previous year of operations and explains how the company fared in that time period. MD&A usually addresses the upcoming year, outlining future goals and approaches to new projects. Quarterly and semiannual reports from public companies are crucial for investors to make sound decisions when investing in capital markets. Unlike banking , investment in capital markets

1734-558: A position within a radius of 180 meters. The ship's position was determined by radar ranging to buoys and sonar ranging from subsea beacons. Whereas the Cuss 1 was kept in position manually, later in the same year Shell launched the drilling ship Eureka that had an analogue control system interfaced with a taut wire, making it the first true DP ship. While the first DP ships had analogue controllers and lacked redundancy, since then vast improvements have been made. Besides that, DP nowadays

1836-457: A result, Cox said that an investigation would ensue into "all staff contact and relationships with the Madoff family and firm, and their impact, if any, on decisions by staff regarding the firm". SEC Assistant Director of the Office of Compliance Investigations Eric Swanson had met Madoff's niece, Shana Madoff , when Swanson was conducting an SEC examination of whether Bernard Madoff was running

1938-544: A self-made multimillionaire, financier, and leader among the Irish-American community, as chairman of the SEC. Roosevelt chose Kennedy partly based on his experience on Wall Street. Two of the other five commissioners were James M. Landis and Ferdinand Pecora . Kennedy added a number of intelligent young lawyers to the SEC staff, including William O. Douglas and Abe Fortas , both of whom later became Supreme Court Justices. Kennedy's team defined four missions for

2040-408: A slushy combination of drilling mud , methane gas , and water. The gas component of the slushy material quickly transitioned into a fully gaseous state and then ignited into a series of explosions and then a firestorm. An attempt was made to activate the blowout preventer , but it failed. The final defense to prevent an oil spill, a device known as a blind shear ram , was activated but failed to plug

2142-473: A strict policy of refraining from commenting on the existence or status of any ongoing investigation. Prior to the enactment of the federal securities laws and the creation of the SEC, securities trading was governed by so-called blue sky laws . These laws were enacted and enforced at the state level and regulated the offering and sale of securities to protect the public from fraud. Though the specific provisions of these laws varied among states, they all required

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2244-505: A threat to safe operations and the environment, including possible loss of life, injury, damage to property or the environment, and loss of reputation and time. Incident records indicate that even vessels with redundant dynamic positioning systems are subject to occasional loss of position, which can be due to human error, procedural failure, dynamic positioning system failures, or bad design. Dynamic positioning failure results in an inability to maintain position or heading control, and can be

2346-400: A three-part mission: to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation. To achieve its mandate, the SEC enforces the statutory requirement that public companies and other regulated entities submit quarterly and annual reports , as well as other periodic disclosures. In addition to annual financial reports , company executives must provide

2448-678: A vertical depth of 35,050 ft (10,683 m) and measured depth of 35,055 ft (10,685 m) in the Tiber Oil Field at Keathley Canyon block 102, approximately 250 miles (400 km) southeast of Houston , in 4,132 feet (1,259 m) of water. Deepwater Horizon was a fifth-generation, RBS-8D design (i.e. model type), deepwater, dynamically positioned , column-stabilized, semi-submersible mobile offshore drilling unit , designed to drill subsea wells for oil exploration and production using an 18.75 in (476 mm), 15,000 psi (100,000 kPa) blowout preventer , and

2550-471: Is a risk of damage or injuries. Depending on the risk, the operation is done in Class 2 or 3. This means at least three Position reference systems should be selected. This allows the principle of voting logic, so the failing PRS can be found. For this reason, there are also three DP control computers, three gyrocompasses, three MRU's and three wind sensors on Class 3 ships. If a single fault occurs that jeopardizes

2652-516: Is cited by lawyers, academics and journalists as an example of ecocide . The biographical disaster movie Deepwater Horizon , released in 2016, depicts the events of the 2010 Deepwater Horizon explosion and subsequent oil spill. The movie is based on "Deepwater Horizon's Final Hours", an article published in The New York Times . Additional references explaining events Dynamic positioning The computer program contains

2754-793: Is headquartered in Washington, D.C. The SEC's divisions are: Corporation Finance is the division that oversees the disclosure made by public companies , as well as the registration of transactions, such as mergers, made by companies. The division is also responsible for operating EDGAR. The Trading and Markets division oversees self-regulatory organizations (SRO's) such as the Financial Industry Regulatory Authority (FINRA) and Municipal Securities Rulemaking Board (MSRB) and all broker-dealer firms and investment houses . This division also interprets proposed changes to regulations and monitors operations of

2856-455: Is not guaranteed by the federal government. The potential for large gains needs to be weighed against that of sizable losses. Mandatory disclosure of financial and other information about the issuer and the security itself gives private individuals as well as large institutions the same fundamental facts about the public companies they invest in, thereby increasing public scrutiny while reducing insider trading and fraud . In an attempt to level

2958-611: Is not only used in the oil industry, but also on various other types of ships. In addition, DP is not limited to maintaining a fixed position any more. One of the possibilities is sailing an exact track, useful for cablelay , pipelay, survey and other tasks. Other methods of position-keeping are the use of an anchor spread and the use of a jack-up barge. All have their own advantages and disadvantages. Although all methods have their own advantages, dynamic positioning has made many operations possible that were not feasible before. The costs are falling due to newer and cheaper technologies, and

3060-435: Is the ability to withstand, while on DP mode, the loss of equipment which is online, without losing position or heading. A single failure can be, amongst others: For certain operations redundancy is not required. For instance, if a survey ship loses its DP capability, there is normally no risk of damage or injuries. These operations will normally be done in Class 1. For other operations, such as diving and heavy lifting, there

3162-937: Is to enforce laws against market manipulation . Created by Section 4 of the Securities Exchange Act of 1934 (now codified as 15 U.S.C.   § 78d and commonly referred to as the Exchange Act or the 1934 Act), SEC enforces the Securities Act of 1933 , the Trust Indenture Act of 1939 , the Investment Company Act of 1940 , the Investment Advisers Act of 1940 , the Sarbanes–Oxley Act of 2002 , among other statutes. The SEC has

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3264-472: Is to facilitate incident free DP operations through sharing of knowledge. This committee of dedicated volunteers delivers value to the DP community of vessel owners, operators, Marine Class Societies, engineers and regulators through an annual DP Conference, topical workshops and an extensive set of Guidance Documents covering DP Design Philosophy, DP Operations and Professional Development of DP Personnel. In addition,

3366-510: The Deepwater Horizon of US$ 401 million about 5 May 2010. Financial analysts noted that the insurance recovery was likely to be more than the value of the rig (although not necessarily its replacement value) and any liabilities – the latter estimated at as much as US$ 200 million . Litigation, ultimate assessment of damage, and the scope of final insurance recovery were all unknown as of June 2010, with analysts reporting that

3468-581: The Great Recession that the SEC was supposed to have been regulating. The documents included those relating to " Matters Under Inquiry ", or MUI, the name the SEC gives to the first stages of the investigation process. The tradition of destruction began as early as the 1990s. This SEC activity eventually caused a conflict with the National Archives and Records Administration when it was revealed to them in 2010 by Flynn. Flynn also described

3570-571: The Horizon collapsed, leaving the well gushing at the seabed and becoming the largest marine oil spill in history . Built in 2001 in South Korea by Hyundai Heavy Industries , the rig was commissioned by R&B Falcon (a later asset of Transocean), registered in Majuro , and leased to BP from 2001 until September 2013. In September 2009, the rig drilled the deepest oil well in history at

3672-702: The New York Stock Exchange , self-regulatory organizations , the Municipal Securities Rulemaking Board , NASDAQ , alternative trading systems , and any other persons engaged in transactions for the accounts of others. Section 4 of the 1934 Act transferred the FTC's enforcement authority under the 1933 Act to the newly created Securities and Exchange Commission and tasked the new Commission with enforcing both Acts. In 1934, Roosevelt named his friend Joseph P. Kennedy ,

3774-465: The North Sea , Persian Gulf , Gulf of Mexico , West Africa , and off the coast of Brazil . There are currently more than 1800 DP ships. Dynamic positioning began in the 1960s for offshore drilling . With drilling moving into ever deeper waters, Jack-up barges could not be used any more, and anchoring in deep water was not economical. As part of Project Mohole , in 1961 the drillship Cuss 1

3876-540: The SEC, was at the time representing Morgan Stanley and was involved in this case. While the insider case was dropped at the time, a month prior to the SEC's settlement with Aguirre the SEC filed charges against Pequot. The Senate released a report in August 2007 detailing the issue and calling for reform of the SEC. On September 26, 2016, Democratic senator Mark Warner sent a letter to the SEC, asking them to evaluate whether

3978-499: The United States of America . According to an Associated Press investigation, certain safety documentation and emergency procedure information, including documentation for the exact incident that later occurred, was absent. The exact number of required monthly inspections performed varied over time; the inspections were performed as required for the first 40 months, but after that about 25% of inspections were omitted, although

4080-524: The Commission and other Divisions/Offices and developing customized, analytic tools and analyzes to proactively detect market risks indicative of possible violations of the Federal securities laws. Using data, DERA staff create analytic programs designed to detect patterns identifying risks, enabling Commission divisions and offices to deploy scarce resources targeting possible misconduct. DERA also houses

4182-453: The Commission that the SEC undertake enforcement action against a person or company if that entity engages in a particular action. These letters are sent in response to requests made when the legal status of an activity is not clear. These letters are publicly released and increase the body of knowledge on what exactly is and is not allowed. They represent the staff's interpretations of the securities laws and, while persuasive, are not binding on

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4284-597: The DP community in achieving incident free DP operations. The documents are free to download from the Committee's website http://dynamic-positioning.com Securities %26 Exchange Commission The U.S. Securities and Exchange Commission ( SEC ) is an independent agency of the United States federal government , created in the aftermath of the Wall Street Crash of 1929 . Its primary purpose

4386-422: The DP system through sensors : In the beginning PID controllers were used and today are still used in the simpler DP systems. But modern controllers use a mathematical model of the ship that is based on a hydrodynamic and aerodynamic description concerning some of the ship's characteristics such as mass and drag . Of course, this model is not entirely correct. The ship's position and heading are fed into

4488-512: The Investment Company Act of 1940 and Investment Advisers Act of 1940. This division's responsibilities include: The Enforcement Division investigates violations of the securities laws and regulations to bring legal actions against alleged violators. It is the largest division in terms of both headcount and budget, and its resources have been increased by more than 50% since the 2007–2008 financial crisis . The SEC can bring

4590-444: The Madoff investigation, among others, because Kotz was a "very good friend" with Markopolos. It concluded that while it was unclear when Kotz and Markopolos became friends, it would have violated U.S. ethics rules if their relationship began before or during Kotz's Madoff investigation. The report also found that Kotz himself "appeared to have a conflict of interest" and should not have opened his Standford investigation, because he

4692-483: The President of the United States. No more than three Commissioners may belong to the same political party. Their terms last five years and are staggered so that one commissioner's term ends on June 5 of each year. Service may continue up to eighteen additional months past term expiration. The president also designates one of the commissioners as chairman, the SEC's top executive. However, the president does not possess

4794-525: The SEC can be accessed via the SEC's online system, EDGAR. In 2019, the Securities and Exchange Commission Historical Society introduced an online gallery to illustrate changes in the US securities market structure since the 1930s. The online gallery features a narrative history supported by dozens of documents, papers, interviews, photos and videos. The commission has five commissioners who are appointed by

4896-476: The SEC to inform rule-making initiatives, identify and monitor risks, improve industry practices and pursue misconduct. There are 11 regional offices throughout the US, which are listed below along with the name of the respective regional director. Among the SEC's offices are: Comment letters are issued by the SEC's Division of Corporation Finance in response to a company's public filing. This letter, initially private, contains an itemized list of requests from

4998-764: The SEC's Office of the Inspector General (OIG). Going to the OIG was "well-known to be a career-killer". Because of concerns raised by David P. Weber , former SEC Chief Investigator, regarding conduct by SEC Inspector General H. David Kotz , Inspector General David C. Williams of the U.S. Postal Service was brought in to conduct an independent, outside review of Kotz's alleged improper conduct in 2012. Williams concluded in his 66-page Report that Kotz violated ethics rules by overseeing probes that involved people with whom he had conflicts of interest due to "personal relationships". The report questioned Kotz's work on

5100-534: The SEC, but only 21 letters for these companies were posted on the SEC's website. John W. White, the head of the Division of Corporation Finance, told the New York Times in 2006: "We have now resolved the hurdles of posting the information... We expect a significant number of new postings in the coming months." No-action letters are letters by the SEC staff indicating that the staff will not recommend to

5202-507: The SEC. Each comment in the letter asks the filer to provide additional information, modify their submitted filing, or change the way they disclose in future filings. The filer must reply to each item in the comment letter. The SEC may then reply back with follow-up comments. This correspondence is later made public. In October 2001 the SEC wrote to CA, Inc. , covering 15 items, mostly about CA's accounting, including 5 about revenue recognition . The chief executive officer of CA, to whom

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5304-408: The SEC. The Division is involved across the entire range of SEC activities, including policy-making, rule-making, enforcement, and examination. As the agency's "think tank", DERA relies on a variety of academic disciplines, quantitative and non-quantitative approaches, and knowledge of market institutions and practices to help the Commission approach complex matters in a fresh light. DERA also assists in

5406-694: The Securities Act of 1933 and Securities Exchange Act of 1934; both laws are considered parts of Franklin D. Roosevelt 's New Deal program. After the Pecora Commission hearings on abuses and frauds in securities markets, Congress passed the Securities Act of 1933 ( 15 U.S.C.   § 77a ), which federally regulates original issues of securities across state lines, primarily by requiring that issuing companies register distributions prior to sale so that investors may access basic financial information and make informed decisions. For

5508-587: The advantages are becoming more compelling as offshore work enters ever deeper water and the environment (coral) is given more respect. With container operations, crowded ports can be made more efficient by quicker and more accurate berthing techniques. Cruise ship operations benefit from faster berthing and non-anchored "moorings" off beaches or inaccessible ports. Important applications include: A ship can be considered to have six degrees of freedom in its motion, i.e., it can translate and rotate on three perpendicular axes. Three of these involve translation : and

5610-563: The aftermath was of unprecedented scale and complexity compared to previous disasters which themselves took many years to resolve. A July 2010 analysis by the Financial Times of the aftermath cited legal sources as saying that "at some point the scale of the litigation becomes so large that it really is novel", that "the situation is likely to be complicated further because the variety of probable cases means it will be hard to aggregate them into so-called class actions " and that there

5712-645: The blame for the spill to BP, 30% to Transocean, and 3% to Halliburton. BP issued a statement strongly disagreeing with the finding, and saying the court's decision would be appealed. On 8 December 2014, The US Supreme Court rejected BP's legal challenge to a compensation deal for the 2010 Gulf of Mexico oil spill. The settlement agreement had no maximum, but BP initially estimated that it would pay about $ 7.8bn (£6.1bn) to compensate victims. As of 2018, approximately 390,000 claims for compensations had been filled, with around $ 65bn paid in settlements; thousands of claims were still outstanding. The Deepwater Horizon oil spill

5814-647: The blowout preventer) and the other in 2003 (pollution). A sixth citation in 2007 related to non- grounded electrical equipment was later withdrawn when the equipment was determined to be compliant with regulations. Overall the Deepwater Horizon 's safety record was "strong" according to a drilling consultant reviewing the information. In 2009 the Minerals Management Service "herald[ed] the Deepwater Horizon as an industry model for safety". According to AP's investigation "its record

5916-506: The coast of Louisiana. During its operational lifetime, the rig was actively in operation for 93% of the time it was in service (2,896 of 3,131 days). The remainder partly was time spent moving between sites. The Minerals Management Service (renamed on 18 June 2010 to the Bureau of Ocean Energy Management, Regulation and Enforcement , or Bureau of Ocean Energy (BOE)) is the regulatory and inspecting body for offshore oil drilling and rigs in

6018-400: The commission's Chief Economist. The Division of Examinations conducts the SEC's National Exam Program. The Division's mission is to protect investors, ensure market integrity and support responsible capital formation through risk-focused strategies that: (1) improve compliance; (2) prevent fraud; (3) monitor risk; and (4) inform policy. The results of the Division's examinations are used by

6120-538: The commission's efforts to identify, analyze, and respond to risks and trends, including those associated with new financial products and strategies. Through the range and nature of its activities, DERA serves the critical function of promoting collaborative efforts throughout the agency and breaking through silos that might otherwise limit the impact of the agency's institutional expertise. The Division's activities include providing detailed, high-quality economic and statistical analyzes, and specific subject-matter expertise to

6222-456: The courts. One such use, from 1975 to 2007, was with the nationally recognized statistical rating organization (NRSRO), a credit rating agency that issues credit ratings that the SEC permits other financial firms to use for certain regulatory purposes. In the latest Center for Effective Government analysis of 15 federal agencies which receive the most Freedom of Information Act (FOIA) requests published in 2015 (using 2012 and 2013 data,

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6324-546: The current disclosure regime was adequate, citing the low number of companies' disclosures to date. In 2009, the Project on Government Oversight , a government watchdog group, sent a letter to Congress criticizing the SEC for failing to implement more than half of the recommendations made to it by its Inspector General . According to POGO, in the prior two years, the SEC had taken no action on 27 out of 52 recommended reforms suggested in Inspector General reports, and still had

6426-570: The decision of which class applies to what kind of operation to the operator of the DP ship and its client, the Norwegian Maritime Authority(NMA) has specified what Class should be used in regard to the risk of an operation. In the NMA Guidelines and Notes No. 28, enclosure A four classes are defined: Based on this the type of ship is specified for each operation: Loss of position, also known as runoff, can be

6528-511: The different PRSs is not the same. While a DGPS has a high accuracy and precision, a USBL can have a much lower precision. For this reason, the PRS's are weighted. Based on variance a PRS receives a weight between 0 and 1. To maintain position azimuth thrusters (electric, L-drive or Z-drive ) bow thrusters , stern thrusters, water jets , rudders and propellers are used. DP ships are usually at least partially diesel-electric , as this allows

6630-721: The engine load between 60% and 80%. The set-up depends on the DP class of the ship. A Class 1 can be relatively simple, whereas the system of a Class 3 ship is quite complex. On Class 2 and 3 ships, all computers and reference systems should be powered through a UPS . Based on IMO (International Maritime Organization) publication 645 the Classification Societies have issued rules for Dynamic Positioned Ships described as Class 1, Class 2 and Class 3. Classification Societies have their own Class notations: DNV rules 2011 Pt6 Ch7 introduced "DPS" series of classification to compete with ABS "DPS" series. Where IMO leaves

6732-561: The first year of the law's enactment, the enforcement of the statute rested with the Federal Trade Commission. The subsequent Securities Exchange Act of 1934 ( 15 U.S.C.   § 78d ) regulates secondary markets for securities. The 1934 Act regulates secondary trading between individuals and companies which are often unrelated to the original issuers of securities. Entities under the SEC's authority include securities exchanges with physical trading floors such as

6834-554: The former SEC chairman, has recognized the organization's multiple failures in relation to the Bernard Madoff fraud. Starting with an investigation in 1992 into a Madoff feeder fund that only invested with Madoff, and which, according to the SEC, promised "curiously steady" returns, the SEC did not investigate indications that something was amiss in Madoff's investment firm. The SEC has been accused of missing numerous red flags and ignoring tips on Madoff's alleged fraud. As

6936-649: The industry. In practice, the SEC delegates most of its enforcement and rulemaking authority to FINRA. In fact, all trading firms not regulated by other SROs must register as a member of FINRA. Individuals trading securities must pass exams administered by FINRA to become registered representatives . The Investment Management Division oversees registered investment companies, which include mutual funds , as well as registered investment advisors . These entities are subject to extensive regulation under various federal securities laws. The Division of Investment Management administers various federal securities laws, in particular,

7038-408: The investigation notes this is partly expected, since there are circumstances such as weather and movement which preclude an inspection. Reports of the last three inspections for 2010 were provided by Freedom of Information legislation . Each of these inspections had taken two hours or less. During its lifetime the rig received 5 citations for non-compliance, 4 of which were in 2002 (safety, including

7140-402: The largest settlements in the history of the SEC (approximately $ 51 billion in all) on behalf of investors who purchased auction rate securities from six different financial institutions. The SEC has been criticized "for being too 'tentative and fearful' in confronting wrongdoing on Wall Street ", and for doing "an especially poor job of holding executives accountable". Christopher Cox ,

7242-477: The letter was addressed, pleaded guilty to fraud at CA in 2004. In June 2004, the SEC announced that it would publicly post all comment letters, to give investors access to the information in them. An analysis of regulatory filings in May 2006 over the prior 12 months indicated, that the SEC had not accomplished what it said it would do. The analysis found 212 companies that had reported receiving comment letters from

7344-408: The most recent years available), the SEC was among the 5 lowest performers, earned a D− by scoring 61 out of a possible 100 points, i.e. did not earn a satisfactory overall grade. It had deteriorated from a D− in 2013. The SEC's Enforcement Division took a number of major actions in 2009–12. The SEC announced on September 17, 2008, strict new rules to prohibit all forms of " naked short selling " as

7446-487: The new Commission: (1) to restore investor confidence in the securities market, which had practically collapsed; (2) to restore integrity to securities markets by prosecuting and eliminating fraudulent and unsound practices targeting investors; (3) to end million-dollar insider trading by top officials of major corporations; and (4) to establish a complex and universal system of registration for securities sold in America, with

7548-473: The other three rotation : Dynamic positioning is concerned primarily with control of the ship in the horizontal plane , i.e. the translation along the two horizontal axes (surge and sway) and rotation on the vertical axis (yaw). A ship that is to be used for DP requires: For most applications, the position reference systems and thrust elements must be carefully considered when designing a DP ship. In particular, for good control of position in adverse weather,

7650-586: The past decades. Producers of DP systems are: Marine Technologies LLC, Kongsberg Maritime , Navis Engineering Oy , GE , SIREHNA , Wärtsilä (ex L-3), MT-div. Chouest, Rolls-Royce plc , Praxis Automation Technology , Brunvoll AS. The term digital anchor has been used to describe such dynamic positioning systems. . The applications and availability depends on the type of work and water depth. The most common position reference systems (PRS) and position measuring systems (PME) are: More advanced methods are: Besides position and heading, other variables are fed into

7752-558: The playing field for all investors, the SEC maintains an online database called EDGAR (the Electronic Data Gathering, Analysis, and Retrieval system) online from which investors can access information filed with the agency, such as reports. The same online system also accepts tips and complaints from investors to help the SEC track down violators of the securities laws, as well as offering publications on investment-related topics for public education. The SEC maintains

7854-449: The position of DPO is gaining increasing prominence. This shifting landscape led to the creation of The International Dynamic Positioning Operators Association (IDPOA) in 2009. www.dpoperators.org IDPOA membership is made up of certified DPO's who qualify for fellowship (fDPO), while Members (mDPO) are those with DP experience or who may already be working within the DP certification scheme. The International Marine Contractors Association

7956-496: The power to fire the appointed Commissioners, a provision that was made to ensure the independence of the SEC. This issue arose during the 2007–2008 financial crisis and the John McCain 2008 presidential campaign . The current board members as of September 24, 2024: President Biden has nominated the following to fill a seat on the commission. They await Senate confirmation. Within the SEC, there are six divisions, which

8058-476: The prospect jointly owned by BP (65%), Anadarko Petroleum (25%) and MOEX Offshore 2007 (10%). Deepwater Horizon was still working on the Macondo site on 20 April 2010, when a violent explosion occurred resulting in destruction of the rig and the subsequent oil spill. This oil spill has been recorded as the largest offshore spill to occur to date, resulting in 40 miles (64 km) of coastal pollution. The well

8160-431: The redundancy, i.e., failing of a thruster, generator or a PRS, and this cannot be resolved immediately, the operation should be abandoned as quickly as possible. To have sufficient redundancy, enough generators and thrusters should be on-line so the failure of one does not result in a loss of position. This is left to the judgment of the DP operator. For Class 2 and Class 3 a Consequence Analysis should be incorporated in

8262-496: The registration of all securities offerings and sales, as well as of every U.S. stockbroker and brokerage firm. However, blue sky laws were generally considered ineffective. For example, as early as 1915, the Investment Bankers Association told its members that they could circumvent blue sky laws by making securities offerings across state lines through the mail. The SEC's authority was established by

8364-460: The rig and transmitted maintenance and troubleshooting information. Advanced systems had a major role in the rig's operation, from pressure and drill monitoring technology, to automated shutoff systems and modelling systems for cementing . The OptiCem cement modelling system, used by Halliburton in April 2010, played a crucial part in cement slurry mix and support decisions. These decisions became

8466-558: The rig was registered in the Republic of Panama . Transocean, through its Steinhausen, Switzerland subsidiary Triton Asset Leasing GmbH, operated the rig under the Marshallese flag of convenience . The rig was leased to BP by a three-year contract for deployment in the Gulf of Mexico after construction. The lease was renewed in 2004 for a year, 2005 for five years, and 2009 for three years covering 2010 to 2013. The last contract

8568-431: The sea bottom (pipelines, templates) or other problems. Dynamic positioning may either be absolute in that the position is locked to a fixed point over the bottom, or relative to a moving object like another ship or an underwater vehicle. One may also position the ship at a favorable angle towards wind, waves and current, called weathervaning. Dynamic positioning is used by much of the offshore oil industry, for example in

8670-504: The seabed than the rig's official drilling specification stated on the company's fleet list. In February 2010, Deepwater Horizon commenced drilling an exploratory well at the Macondo Prospect ( Mississippi Canyon Block 252), about 41 miles (66 km) off the southeast coast of Louisiana , at a water depth of approximately 5,000 feet (1,500 m). The Macondo prospect exploration rights had been acquired by BP in 2009, with

8772-443: The system and compared with the prediction made by the model. This difference is used to update the model by using Kalman filtering technique. For this reason, the model also has input from the wind sensors and feedback from the thrusters. This method even allows not having input from any PRS for some time, depending on the quality of the model and the weather. This process is known as dead reckoning . The accuracy and precision of

8874-662: The system to assist the DPO in this process. The redundancy of a DP ship should be judged by a failure mode and effects analysis (FMEA) study and proved by FMEA trials. Besides that, annual trials are done and normally DP function tests are completed prior to each project. The DP operator (DPO) judges whether there is enough redundancy available at any given moment of the operation. IMO issued MSC/Circ.738 (Guidelines for dynamic positioning system (DP) operator training) on 24-06-1996. This refers to IMCA (International Marine Contractors Association) M 117 as acceptable standard. To qualify as

8976-582: The thrust capability of the ship in three axes must be adequate. Maintaining a fixed position is particularly difficult in polar conditions because ice forces can change rapidly. Ship-borne ice detection and mitigation is not sufficiently developed to predict these forces, but may be preferable to sensors placed by helicopter . There are several means to determine a ship's position at sea. Most traditional methods used for ships navigation are not accurate enough for some modern requirements. For that reason, several positioning systems have been developed during

9078-467: The transfer value as US$ 340 million . As of 2010, the rig was insured for US$ 560 million covering the replacement cost and wreckage removal. Deepwater Horizon worked on wells in the Atlantis (BP 56%, BHP 44%) and Thunder Horse (BP 75%, ExxonMobil 25%) oil fields . It was described at times as a "lucky" and "celebrated" rig, and in 2007 was still described as "one of the most powerful rigs in

9180-551: The well. Ten workers were presumed killed by the initial explosion: Jason Anderson, 35, of Midfield, Texas; Donald Clark, 49, of Newellton, Louisiana; Stephen Ray Curtis, 40, of Georgetown, Louisiana; Gordon Jones, 28, of Baton Rouge, Louisiana; Roy Wyatt Kemp, 27, Jonesville, Louisiana; Karl Kleppinger Jr., 38, Natchez, Mississippi; Keith Blair Manuel, 56, of Gonzales, Louisiana; Dewey Revette, 48, of State Line, Mississippi; Shane Roshto, 22, Liberty, Mississippi; Adam Weise, 24, Yorktown, Texas. An eleventh

9282-669: The well. The resultant oil spill continued until 15 July when it was closed by a cap. Relief wells were used to permanently seal the well, which was declared "effectively dead" on 19 September 2010. NOAA established the Gulf Spill Restoration project, administered by the Deep Water Horizon National Resource Damage Assessment Trustees, to help to restore much of the coastline. Transocean received an early partial insurance settlement for total loss of

9384-506: The world". In 2006, it discovered oil in the Kaskida oil field and, in 2009, the "giant" Tiber oil field . The well in the Tiber field had a true vertical depth of 35,050 ft (10,683 m) and a measured depth of 35,055 ft (10,685 m), below 4,132 ft (1,259 m) of water. The well was the deepest oil well in the world and more than 5,000 feet (1,500 m) farther below

9486-630: Was "no way to put this in historical context because we have never faced anything like this before". As with the Exxon Valdez disaster , litigation was being discussed in terms of a 20-year timescale. In January 2013, Transocean agreed to pay US$ 1.4 billion for violations of the US Clean Water Act. BP had earlier agreed to pay $ 2.4 billion but was liable to additional penalties that could range from $ 5 billion to $ 20 billion. In September 2014, Halliburton agreed to settle

9588-433: Was crane operator Aaron Dale Burkeen, 37, Philadelphia, Mississippi, who died in the subsequent fire. The rig was evacuated, with injured workers airlifted to medical facilities. After approximately 36 hours, Deepwater Horizon sank on 22 April 2010. The remains of the rig were located resting on the seafloor approximately 1,500 metres (4,900 ft) deep at that location, and about 400 metres (1,300 ft) northwest of

9690-506: Was fitted with four steerable propellers. The Mohole project was attempting to drill to the Moho , which required a solution for deep water drilling. It was possible to keep the ship in position above a well off La Jolla , California, at a depth of 948 meters. After this, off the coast of Guadalupe , Mexico, five holes were drilled, the deepest at 183 m (601 ft) below the sea floor in 3,500 m (11,700 ft) of water, while maintaining

9792-685: Was formed in April 1995 from the amalgamation of the Dynamic Positioning Vessel Owners Association, founded in 1990, and the International Association of Offshore Diving Contractors, founded in 1972. While it started with the collection and analysis of DP Incidents, since then it has produced publications on different subjects to improve standards for DP systems. It also works with IMO and other regulatory bodies. The Marine Technology Society Dynamic Positioning (DP) Committee's mission

9894-399: Was friends with a female attorney who represented victims of the fraud. According to former SEC employee and whistleblower Darcy Flynn, also reported by Taibbi, the agency routinely destroyed thousands of documents related to preliminary investigations of alleged crimes committed by Deutsche Bank , Goldman Sachs , Lehman Brothers , SAC Capital , and other financial companies involved in

9996-460: Was impossible to legally make the profits Madoff claimed using the investment strategies that he said he used. In June 2010, the SEC settled a wrongful termination lawsuit with former SEC enforcement lawyer Gary J. Aguirre , who was terminated in September 2005 following his attempt to subpoena Wall Street figure John J. Mack in an insider trading case involving hedge fund Pequot Capital Management ; Mary Jo White , who later served as chair of

10098-490: Was in the final stages of completion after cement had been emplaced for its last casing string. The exploratory work had been described as "concluded" with permission having been requested already from MMS to terminate operations at the Macondo site. The rig was scheduled to move to its next roles as semi-permanent production platforms, initially at the Tiber site followed by a return to the Kaskida field, an oil dome 50 miles off

10200-465: Was one of approximately 200 deepwater offshore rigs capable of drilling in waters deeper than 5,000 ft (1,500 m). Its American Bureau of Shipping (ABS) class notations were "A1, Column Stabilized Drilling Unit, AMS, ACCU, DPS-3". In 2002, the rig was upgraded with "e-drill", a drill monitoring system whereby technical personnel based in Houston , Texas, received real-time drilling data from

10302-403: Was so exemplary, according to MMS officials, that the rig was never on inspectors' informal 'watch list' for problem rigs". At 7:45 p.m. CDT on 20 April 2010, during the final phases of drilling the exploratory well off the gulf of Mexico, a geyser of seawater erupted from the marine riser onto the rig, shooting 70 metres (230 ft) into the air. This was followed soon by the eruption of

10404-431: Was worth $ 544 million, or $ 496,800 a day, for a "bare rig", with crew, gear and support vessels estimated to cost the same. According to R&B Falcon's filings to SEC in 2001, the transfer document between R&B Falcon and Transocean was dated 17 August 2001, and the rig was specified as "official registration number of 29273-PEXT-1, IMO number of 8764597, with gross tonnage of 32,588 and net tonnage of 9,778" and

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