The Non-Irene Iron Horse Roundup for August/Setpetmber 2011: Genset-apalooza Edition

ARGENTINA: At least 11 people were killed and dozens more injured after a bus collided with two trains in the Argentine capital of Buenos Aires last month.



CCTV cameras on the nearby station platform filmed as the disaster unfolded. Upon impact with the bus, the first train was knocked into the path of an oncoming train that was also pulling into the station.

Argentine Transportation Secretary Juan Pablo Schiavi said that most of the fatalities were on board the bus. The crossing that the bus used was reportedly protected by gates that lowered on a train's approach.

Arizona Eastern B39-8 #8560 leads a train north into Duncan, AZ on the former Southern Pacific Clifton Branch in April 2009. Photo- Micheal Derrick

ARIZONA: Greenwich, CT based shortline operator Genesee & Wyoming [NYSE: GWR] announced last month that it has completed the purchase of the 200+ mile Arizona Eastern from Iowa Pacific Holdings.

Arizona Eastern operates two branchlines in Arizona and New Mexico. The 130 mile line between the Southern Pacific Sunset Route in Bowie, AZ and the copper mines around Miami, Globe and Claypool, AZ was purchased from Southern Pacific in 1988. In 2008, the AZER purchased the 70 mile Clifton branch between Lordsburg, NM and the Freeport McMoRan [NYSE: FCX] mine at Morenci, AZ from Union Pacific.

The deal is worth an estimated $90.1 million and includes about 50 miles of trackage rights over Union Pacific's former SP Sunset route between Bowie, AZ and Lordsburg, NM to connect the two lines.

Nickel Plate 765 doing a photo runby on the Cuyhoga Valley Scenic Railroad at Boston Mills, OH on September 25th. Photo, Richard Thompson

OHIO: The Fort Wayne Railroad Historical Society's restored Nickel Plate Berkshire #765 travelled to the Cuyahoga Valley Scenic Railroad in September to haul a series of excursions as part of the CVSR's 'Steam in the Valley' event. The steam powered excusrions were in additon to the regular slate of diesel powered excusrion trains on the CVSR. This is the second year in a row that the #765 made an appearence on the Cuyahoga Valley Scenic Railroad.

The Berkshire travelled northwest to Owosso, MI from the Akron area to haul a series of fall foliage excursions for the Michigan Steam Institute between Owosso and Alma, MI over track belonging to the Great Lakes Central. The October excursions in Michigan are reportedly to help raise funds to bring the Michigan Steam Institute's own Berkshire steam locomotive- Pere Marquette #1225- back into working order after its 15 year boiler inspection.

F Units and passenger cars from Pan Am Railways and Norfolk Southern make their way across the Hudson River at Stillwater, NY enroute to the former B&M yard at Mechanicsville, NY. Photo, John Bazan

PAN AM RAILWAYS: On August 22nd and 23rd, Pan Am Railways and Norfolk Southern operated a joint Office Car special between Ayer, MA and Mechanicville, NY to view progress on the rebuilding of the West end of the line as well as the former B&M Mechanicville yard, which is currently being rebuilt as an intemodal and auto unloading facility.

The office car special used FP9s and cars from both railways before being split up at Mohawk Yard in Schenedtady, NY with the Pan Am equipment heading back east and the Norfolk Southern equipment making its way back to home rails via Canadian Pacific and Binghamton, NY.

Freshly repainted into Boston & Maine 'heritage' colors, Pan-Am GP9 #77 is seen at the former B&M yard in E. Deerfield, MA drilling cars with Guilford-painted GP9 #72 on September 25, 2011. Photo, Justin Winiarz

OTHER PAN AM NEWS: Workers at Pan Am's Waterville, ME shops painted former Boston & Maine GP9 #77 into vintage maroon and gold colors complete with the B&M 'Minuteman' herald that adorned the railway's early diesels.

The locomotive debuted in it's 'new' colors in August and saw service on Waterville, ME-based local SAPPI-3 before being transferred to the Boston & Maine's freight yard at E. Deerfield, MA where it was put into service as the yard switcher. Reportedly, more 'Heritage' style locomotives are in the works for Pan Am, including some vintage EMD's that could be painted in Maine Central's green and orange paint scheme.

Photo, Dave Duccolo

CALIFORNIA: Stockton, CA based Central California Traction Company purchased their first genset locomotive, which was completed by the Brookville Locomotive Works division of Brookfield Equipment in August. The locomotive, designated a BL21CG is former Brookville Locomotive Works Demonstrator #259 which was rebuilt from a Maine Central GP38.

In addition to the former Brookfield demonstrator, Central California Traction currently rosters a number of SW1500s as well as a couple of 1st generation GP18s and GP7s.

Brookfield has previously built gensets for both ConnDot and MetroNorth to be used in passenger and work train service.

NBSR GP38-2 #2317 seen heading west on the former Montreal Maine & Atlantic/ Bangor & Aroostook Millinocket subdivision with Maine Northern/New Brunswick Southern Train #901 bound for Brownsville, Jct, ME on July 30, 2011. Photo, Ron Tilley

MAINE: St. John, NB-based New Brunswick Southern Railway has begun operations over nearly 230 miles of track owned by the state of Maine beginning in July. The track was the former Montreal Maine & Atlantic Millinocket subdivision between Millinocket, ME and Madawaska, ME as well as branch lines to Houlton, Limestone and Ft. Fairfield, ME. Previously the line had belonged to the Bangor and Aroostook.

In early 2010, the MM&A filed a notice of intent to abandon most of its northern trackage. The state then reached an agreement with MM&A to purchase the lines for $20 million and then subcontract operation of the lines out to a third part while MM&A would retain trackage rights over the line to serve between St. Leonard, NB to the north and Brownville Jct, ME to the south.

In April 2011, the New Brunswick Southern- part of Canadian congolmerate J.D. Irving's holdings in transportation, lumber, food processing agriculture, retail and shipbuilding- was awarded the contract to operate the former MM&A lines, with the actual transfer set to take place on July 1, 2011.

Prior to the agreement, the New Brunswick Southern already operated over 100 miles of former Canadian Pacific track in the state of Maine as the Eastern Maine Railway between the Maine Central/Guilford/Pan-Am junction at Mattawamkeag, ME and the international border at Vanceboro, ME as well as the MM&A connection in Brownsville Jct.

Parent company J.D. Irving said that they expect to hire 30 additional employees and purchase more rolling stock as a result of the agreement with the state of Maine. To accomodate the expansion, the NBSR also purchased a pair of former Union Pacific GP38-2s that arrived in July


OREGON: The former Southern Pacific branchline between Eugene and Coos Bay, OR has been reopened and is seeing limited freight service as the Coos Bay Rail Link ran the first through train over the line in nearly four years.

Rail America's Central Oregon & Pacific last operated over the line in September 2007, electing to shut down most of the branch west of Eugene due to at least nine aging tunnels that would cost an estimated $7 million to repair. A month later, the Port of Coos Bay filed a $15 million suit against Rail America saying that they failed to provide the required 180 day notice prior to shutdown. In late 2008, the surface transportation board ordered Rail America to sell the line to the Port of Coos Bay for $16 million. Since then, contractors have gone to work replacing washouts, strengthening tunnels and inspecting trestles and crossings. In April 2011, it was announced that Arizona-based ARG Trains would handle the railway operations of the 133 mile line.

The first revenue Coos Bay Rail Link train departed Eugene on October 11th with a single SW1200 and dozen centerbeam flatcars, arriving in Coos Bay the following day.

MPI GP15D Genset #1509 and GP20D #2009 are seen waiting to enter yard limits in Rutland, VT with a local freight on August 10, 2011. Photo, Kevin Burkholder

VERMONT: The Vermont Railway began testing a pair of MPI Gensets in early August. The two locomotives- a 1500 HP GP15D and 2000 HP GP20D- were scheduled for three months of testing and began service as a pair on the Rutland to Florence, VT local their first week.

At around the same time, the VRS has started the long-term lease of two former Rail America GP38-3s- numbered 3801 and 3803.

Iowa Interstate 2-10-2 QJ steam locomotive #6988 seen running around the wye at Bureau, IL on September 9, 2011. Photo, Erik Rasmussen

IOWA INTERSTATE: Just because Trainfest 2011 is over and done with doesn't mean that the Iowa Interstate was finished with steam for the year. On the weekend of September 9-11, the town of Geneseo, IL- just east of Rock Island, IL on Iowa Interstate's former Chicago, Rock Island & Pacific line- was home to the 5th annual 'Planes, Trains and Automobiles'.

Besides vintage aircraft and automobiles, the Iowa Interstate provided the trains by having Chinese built 2-10-2 QJ class steam locomotive #6988 on display along with a switcher from Patriot Renewable Fuels. The #6988 also powered short excursions out of Geneseo with Iowa Interstate coaches.

Iowa Interstate ES44AC #513 is seen leading detoured freight BICB (BI = Indiana Harbor Belt Rail Yard at Blue Island, IL; CB = Council Bluffs, IA) off IAIS rails in Peoria Heights, IL on October 9, 2011. Photo- Craig McGregor

OTHER IOWA INTERSTATE NEWS: A derailment in Tuskwila, IL on October 7th forced the detour of Iowa Interstate's daily Chicago-Council Bluffs, IA (and its eastbound counterpart) BICB/CBBI by way of Peoria, IL and then west to Colona, IL on the BNSF via Galesburg, IL.

About a half dozen cars loaded with ethanol ignited and the village of Tuskwila had to be evacuated after the derailment in the early morning hours. Nodoby was injured in the wreck and the fire was contained by mid-morning.

The NTSB is dispatching a 6-person team to investigate the cause of the derailment.

New Genset from Tacoma Rail basking in the sun enxt to Mount Rainer Scenic's Restores Polson Logging 1922-buil Balwin on Aug 27th. Andrew Temoshek photo

WASHINGTON: Tacoma Rail has taken delivery of its first genset, an 3GS21B from National Railway Equipment. The locomotive arrived on the property in time for an open house where the 3-day old diesel was on display with Mount Ranier Scenic Railway's restored 1922-built Baldwin 2-8-2 #70, contrasting the old and the new.

[Hat tip: Steel Wheels Photography; Canadian Railway Observations; Peoria Station]

Borderline Psychosis Update- Gunmen Dump 35 Bodies on Expressway in Rush Hour; Female Ex-Cop & Zeta Leader Arrested; Border Patrol Finds Arms Cache

VERACRUZ: In a gruesome and brazen display of force, masked gunmen in the Veracruz suburb of Boca De Rio dumped 35 corpses by the side of a busy highway in the middle of rush hour this week.

Veracruz state Attorney General Reynaldo Escobar Perez said the bodies were left piled in two trucks and on the ground at an underpass near the city's biggest shopping mall and its statue of the Voladores de Papantla — ritual dancers from Veracruz state.

Motorists caught in the horrifying scene Tuesday afternoon posted warnings on Twitter that masked gunmen in military uniforms were blocking Manuel Avila Camacho Boulevard and pointing their guns at civilians.

"They don't seem to be soldiers or police," one tweet read. Another said, "Don't go through that area, there is danger."

Escobar said police were reviewing surveillance video recorded in the area.

Local media said that 12 of the victims were women and that some of the dead men had been among prisoners who escaped from three Veracruz prisons on Monday, but Escobar said he couldn't confirm that.

At least 32 inmates got away from the three Veracruz prisons. Police recaptured 14 of them.

The bodies were dumped less than a mile away from where Meixo's top prosecutors were scheduled to meet on Wednesday. A banner left behind at the scene claimed that the dead bodies were the handywork of 'The New Generation', a Jalisco-based gang reportedly allied with Sinaloa Cartel head Joaquin 'El Chapo' Guzman.

The Gulf cartel had control of smuggling and distribution in and around the port of Veracruz until 2010, when they were usurped by their former enforcers- Los Zetas. At least a dozen of the corpses have been identified as having a criminal background, reportedly working with the Zetas.



NUEVO LEON: Mexican Marines arrested a female underboss for the Zetas in the northern part of the state last week.

Mireya Moreno Carreon is the first woman linked to the Zetas leadership who has been arrested by authorities, the secretariat said.

Moreno Carreon managed drug sales in San Nicolas de Los Garza, a city in the Monterrey metropolitan area.

She apparently took over from Raul Garcia Rodriguez, who was arrested by marines last month in Monterrey, the capital of Nuevo Leon, the secretariat said.

Moreno Carreon was arrested in the Colonia Santa Fe Oriente section of San Nicolas de Los Garza, thanks to "intense intelligence and urban operations work," the Navy Secretariat said.

The suspected drug trafficker was armed with a revolver and driving a stolen vehicle at the time of her arrest, the secretariat said.

Carreon- aka La Flaca- was a former policewoman in Monterrey until 2010 when she was dismissed by supervisors for a "lack of confidence. Reportedly she was wounded by flying glass in a 2009 shootout between police and extortionists that left a kindergarten class pinned down in the crossfire.

TAMAULIPAS: The bodies of a man and a woman left dangling from an overpass in the border city of Nuevo Laredo last week included handmade signs explicitly threatening bloggers and internet.

Not only have social networking and microblogging sites like Twitter demonstrated themselves to be quicker than local media in most cases, but organized crime has succeeded in intimidating local media into silence throughout much of Mexico. Odds are that Twitter users knew about the 35 bodies being dumped on the expressway outside of Veracruz before the local authorities did, as many witnesses were using smartphones to warn motorists of the gruesome spectacle.

"This is going to happen to all the internet busybodies, Listen up, I'm on to you" one placard read. It was signed with a 'Z', presumably for Los Zetas. Two of the blogs mentioned in the threats- Frontera Al Rojo Vivo and El Blog Del Narco [caution, the latter isn't the least bit squeamish about posting graphic crime scene photos- NANESB!] have shown no signs of letting up. The two victims found in Nuevo Laredo have yet to be identified

TEXAS: US Border Patrol agents discovered an abandoned black bag containing six automatic rifles, a grenade launcher, a rocket launcher and three packages of whats believed to be C4 explosive along the Rio Grande outside of Fronton, TX last week.

Agents found the weapons on Tuesday in a black bag along a quiet stretch of the Rio Grande near Fronton, a small community about 210 miles south of San Antonio. No arrests have been made.

The weapons are similar to those reported used in the borderland drug wars and smuggled south from the U.S. into Mexico, and were found in an area of the river that is easily crossed and close to a Mexican cartel battleground.

But authorities stopped short of making any direct link between the guns and the drug cartels, saying only that they signaled a threat to public safety in both Texas and Mexico.

"These deadly weapons could have had a devastating impact on communities on both sides of the border and to our agents and other law enforcement officers," Rosendo Hinojosa, head of Border Patrol's Rio Grande Valley sector, said in a statement.

Officials theorized that the guns were waiting to be smuggled across the border into Mexico, but said that was just speculation.

The discovery took place about 10 miles south of Falcon Lake and on the other side of the border where Los Zetas and the Gulf cartel are locked in a bitter struggle over lucrative smuggling routes.

WASHINGTON DC: In a series of secretly recorded audio tapes dating back to March 2011, an ATF field agent disclosed to an Arizona gun dealer the existence of a 3rd weapon recovered from the December 2010 shootout between the Border Patrol and armed smugglers north of Nogales, AZ that killed Border Patrol agent Brian Terry.

Court records have previously only mentioned two weapons: Romanian WASR "AK-47 type" rifles. Both were allegedly sold to suspects who were under ATF's watch as part of Fast and Furious.

Also, a ballistics report turned over to Congressional investigators only mentions the two WASR rifles. The ballistics report says it's inconclusive as to whether either of the WASR rifles fired the bullet that killed Terry.

The third weapon was reportedly an SKS purchsed from a Texas gun shop.

The recordings were obtained by CBS news as well as copies being turned over to the Office of Inspector General and Congressional investigators.

In other Fast & Furious news, before stepping down this month, US Attorney Dennis Burke had opposed the Terry family's motion to qualify as crime victims in the eyes of the court.

[Hat Tip Support Your Local Gunfighter; Friends of Ours; Pat Dollard]

Millions On West Coast, Arizona Left Without Power Overnight After Blackout Triggered in Arizona

Traffic signals, street lights and crossing signals remain dark at sunset in Cardiff, CA on the night of September 8th. Mike Blake- Reuters photo

Federal regulators are looking into the cause of a prolonged blackout that left millions of people without electricity in southern California, Western Arizona and the northern part of Baja California, Mexico on Thursday afternoon and on into the early morning hours of Friday.

Arizona Public Service Co. said that the problems began at about 3:30 p.m. Thursday when a 115-mile high-power line that runs from west of Phoenix to the Yuma area switched out of service.

APS had an employee working in the Yuma-area substation where the line connects, but officials are unsure if that worker caused the line's failure, said Daniel Froetscher, APS vice president of energy delivery.

"We don't know whether it was related, but we have been very transparent with the work we were doing there, and will investigate whether there is a relationship," he said.

Power wasn't lost immediately, with the first customer calls coming about 10 minutes after the line's failure, so APS will investigate what actually prompted Yuma-area customers to lose service, he said.

"The system has contingencies," he said. "It is designed to withstand the loss of a single line feed. For about 10 minutes or so, there were no interruptions of service. The system performed as intended."

About 56,000 APS customers lost service throughout Yuma, Somerton, San Luis and Gadsden.

Those power outages cascaded west into California, where the high-power transmission line switches from APS control to the California power grid operator.

APS will investigate what allowed the problems to spread, rather than be contained by the protections built into the power system.

The Federal Energy Regulatory Commission, North American Electric Reliability Corp. and other entities also announced Friday they would investigate the outage, possibly leading to fines.

The cascading power failures that were supposed to be localized around Yuma instead made their way west, knocking out power at the San Onofre Nuclear Generating station.

In the San Diego area, flights at Lindbergh field were halted and classes at local schools and universities were cancelled. Some beaches were shut down as nearly 2 million gallons of untreated sewage spilled into the water.

Power was restored by the early morning hours on Friday, but not before restaurants in the region experienced losses in the hundreds of thousands of dollars in food that had to be discarded when refrigeration didn't work and labor when many eateries simply shut their doors to the public. Even though power had returned by Friday morning, hundreds of facilities had to remain closed until a health department alert regarding potentially dangerous tap water was lifted.

Perhaps unsurprisingly, the designated media cheerleaders for the Obama Administration have insisted that the international power failure validates President Obama's call for additional stimulus spending to the tune of hundreds of billions of dollars.

Thursday's blackout was the most widespread since the August 2003 blackout that left a large swath of the Northeast as well as parts of the Midwest and the province of Ontario without electricity [I remember the 2003 blackout well. I was in rural upstate New York, blissfully unaware that there was any significant power outage for at least two hours until I drove into this one small town where their one stoplight wasn't working and their one policeman was directing traffic- NANESB!] That blackout left metropolitan areas such as New York City, Cleveland, Buffalo and Toronto without power at the height of rush hour.

Sports Chowdah Update- Yaroslavl Crash Probe Continues, Two Survivors in Coma; NFL Season Opens up With Pack Attack; Woe Canada, Sox Drop 3 to Toronto

RUSSIA: Officials probing the plane crash site along the banks of the Volga river in Yaroslavl Russia have recovered the flight data recorder from the downed Yak-42 aircraft that was carrying members of the team Lokomotiv Yaroslavl hockey team of Russia's KHL.

The team was enroute to the Belorussian capital of Minsk for their season opener against Minsk Dinamo when the plane went down on Wednesday. Russian investigators from the Moscow-based Interstate Aviation Committee have recovered the black box, but caution that the device had gotten wet after being submerged after the crash. Even with the damaged black box, officals said they had been able to recover some data.

So far it is known that the plane's engines were running at the time of impact and that the crash took place on a clear day. The runway at Yaroslavl's Tunoshna airport was about three times longer than necessary for a Yak-42 to reach takeoff speeds, but investigators are looking at insufficient takeoff speed as one of the factors. Early reports claimed that the doomed flight was overloaded and struggling to reach altitude shortly after takeoff before clipping a nearby communications antennae.

Officials allowed Tunoshna airport to reopen on Thursday, but planes were prohibited from purchasing local fuel as investigators haven't ruled out the possibility that low-grade fuel led to the crash.


In Minsk, a requiem mass was held on Thursday at the arena where the KHL season opener was slated to take place.



The deceased include the following:

Lokomotiv Players and Personnel:
Vitaly Anikeyenko
Yury Bakhvalov
Aleksandr Belyayev
Mikhail Balandin
Aleksandr Vasyunov
Josef Vasicek
Aleksandr Vyukhin
Robert Dietrich
Pavol Demitra
Andrei Zimin
Marat Kalimulin
Aleksandr Karpovtsev
Aleksandr Kalyanin
Andrei Kiryukhin
Nikita Klyukin
Igor Korolyov
Nikolai Krivonosov
Yevgeny Kunnov
Vyacheslav Kuznetsov
Stefan Liv
Jan Marek
Brad McCrimmon
Sergey Ostapchuk
Vladimir Piskunov
Karel Rachunek
Evgeny Sidorov
Karlis Skrastins
Ruslan Saley
Pavel Snurnitsyn
Daniil Sobchenko
Ivan Tkachenko
Pavel Trakhanov
Igor Urychev
Gennady Churilov
Maksim Shuvalov
Artyom Yarchuk

Flight Crew
Andrey Solontsev
Igor Zhevelov
Sergei Zhuravlev
Vladimir Matyushkin
Yelena Sarmatova
Nadezhda Maksumova
Yelena Shavina

There are two survivors of the plane crash include player Alexander Galimov and flight engineer Alexander Sizov. Both of them were airlifted to Moscow for further treatment, with Galimov sustaining burns on more than 80% of his body.

The KHL plans on resuming play on Tuesday, September 13. Officials from the Lokomotiv Yaroslavl organization say they intend to rebuild after Wednesday's tragedy and claimed to have already received calls from former players offering to come back and skate for the club once again. The KHL will fund the roster for Lokomotiv under the league's current option.

RED SOX: The Red Sox continued to limp through September, dropping the final two games of their 4-game series in Toronto.

Tim Wakefield's quixotic quest for elusive win #200 continues as the bullpen squandered an 8-5 lead on Wednesday night, with Toronto coming back in the 8th inning to score 5 runs before going on to win by a 11-10 final.

On Thursday, Andrew Miller allowed 5 earned runs and 8 hits and two walks in 5 innings of work against the Blue Jays. Toronto's Ricky Romero went 6 and ⅔ innings giving up 5 hits, 3 earned runs and three walks, striking out 7 for the win.

So far, the Red Sox have only won two games in the month of September and now 3B Kevin Youkilis was not posted in the lineup for this weekend's series at Tampa Bay. There was no immediate word on why Youkilis wasn't in the Friday night lineup.

Friday night's game at Tropicana Field will feature Wade Davis (9-8; 4.5 ERA) going up against John Lackey (12-11; 6.11 ERA). First pitch is at 7:10 PM and the game will be televised on NESN.



NFL: Are you ready for some football? So was I, as it turns out.

After a prolonged, contentious and highly public feud between the NFL players association and owners, the 2011 NFL season got underway Thursday night in a contest that pitted the previous two Superbowl champions against each other.

In a little noticed move immediately after President Obama's groundbreaking jobs speech, the NFL had scheduled their season opener for Thursday night in Lambeau Field, pitting the New Orleans Saints against the defending Super Bowl champion Green Bay Packers. Packers QB Aaron Rogers went 27 of 35 attempts with 312 yards and 3 TDs in Green Bay's 42-34 win at Lambeau.

New Orleans QB Drew Brees actually had the better night statistically (32-49, 419 yards and 3 TDs) but the Packer's D was able to limit a number of New Orleans drives deep into their territory to field goal attempts.

OTHER NFL NEWS- INDIANAPOLIS: Indianapolis Colts QB Peyton Manning underwent neck surgery, his third such procedure in 19 months and will miss the season opener at Lucas Oil Stadium in Indianapolis.

Doctors and team officials from the Colts have been very ambiguous about a timetable for Manning's return. Some of the less optimistic (but still unconfirmed) reports claim he could miss the entire season.

Manning hasn't missed a start in 14 seasons, starting in 227 consecutive games for Indianapolis.

Veteran QB Kerry Collins, who most recently saw action with Indy's AFC South foe Tenessee Titans, will be starting for the Colts while Manning is out.

OTHER NFL NEWS- CHICAGO- The NFL has no plans to sanction or fine Chicago Bears linebacker Lance Briggs for wearing cleats and gloves adorned with the colors of the US flag. Although technically a uniform violation, the league said that players could wear customized shoes and gloves for Week 1.

NCAA Football: Possible future conference-mates Oklahoma State and Arizona met at Stillwater, OK Thursday night. The 9th ranked Cowboys (2-0) handeled the Wildcats (1-1) fairly easily, winning by a 37-14 final.

Games on tap for Friday night include Arizona state vs #21 Missouri and Louisville hosting Florida International Univ.

ELSEWHERE IN THE BIG 12: After SEC presidents and chancellors welcomed a possible move to the SEC conference by Texas A&M, the move faces a roadblock in the form of Baylor university.

Bayolr is threatening to sue if the Aggies depart the Big 12 and the SEC must reportedly obtain waivers from each school before any such move, according to an e-mail from Big 12 commisioner Dan Beebe. One SEC chancellor said that Texas A&M must resolve any pending legal disputes within the Big 12 before becoming the 13th team in the SEC.

Anti-Social Club Episode of Borderline Psychosis- 53 Killed After Gunmen Torch Monterrey Casino; NM Police Chief Admits Cartel Ties; Iraqi Connection?

UPDATE 8/31: Acting ATF director Kenneth Melson was reassigned to a lesser post in the Justice Department on Tuesday in the wake of further fallout from the Fast & Furious investigation. US Attorney for Minnesota B. Todd Jones was named as acting director after Melson's departure- a permanent head for the ATF would need to be confirmed by the US Senate.



Also on Tuesday, the US Attorney for Arizona resigned effective immediately. US Attorney Dennis Burke stepped down two weeks after testifying before a House Oversight Committee regarding Fast & Furious, which Burke was in charge of as the state's US Attorney.





NUEVO LEON: At least 53 people were killed when eight gunmen burst into a casino in the northern industrial center of Monterrey, doused the place with gasoline and ignited a fire that trapped dozens of patrons and gamblers.

With shouts and profanities, the attackers told the customers and employees to get out. But many terrified customers and employees fled further inside the building, where they died trapped amid the flames and thick smoke that soon billowed out of the building.



Video footage showed workers continuing to remove bodies well into the night.



Monterrey Mayor Fernando Larrazabal said many of the bodies were found inside the casino's bathrooms, where employees and customers had locked themselves to escape the gunmen.



In an act of desperation, authorities commandeered backhoes from a nearby construction site to break into the casino's walls to try to reach the people trapped inside.

The attack took place on August 25th. The following day, Mexican President Felipe Calderon declared three days of mourning and the Mexican government offered a reward of 30 million pesos ($2.4 million) for information leading to any of the assailants in the Casino Royale attack.



On Monday night, Federal Police in Monterrey announced that they had arrested five suspects and were still seeking the whereabouts of two more. Authorities believe a likely motive in the casino attack is nonpayment of extortion money and the five detained suspects are said to be members of the Zetas. Surveillance footage of the suspects filling up five gallon canisters of gasoline at a gas station not too far from the Casino Royale was shown at the conference announcing the arrests Monday.



The attack shocked and angered many Mexicans because instead of career criminals, the victims were mostly middle aged women who frequently visited the casino to play bingo.



MEXICO CITY: 21 of Mexico's 31 senior federal prosecutors abruptly quit earlier this month. Mexican press outlets report this as being the single biggest mass resignation of federal officials in recent history.

The office announced late last month that in Morales' first 100 days on the job, 462 prosecutors and other officials had been dismissed and 111 more were facing criminal charges involving a range of infractions, including fraud, theft, abuse of power and falsification of documents. An additional 386 employees were in the process of being dismissed.



Rosa Elena Torres Davila, a senior official in the attorney general's office, made Monday's announcement and said the resignations were tendered on Friday. They included the top federal prosecutors in some of Mexico's most violent states where drug traffickers have intimidated local authorities and killed thousands of people in cases that have largely gone unprosecuted. They also included the top federal prosecutor in the capital, Mexico City, which is a federal district with a status similar to that of a state.

Attorney General Marisela Morales declined to cite specific reasons behind the mass departures



CALIFORNIA: Local, state and federal law enforcement officers raided an Iraqi-Chaldean social club in San Diego County and arrested 60 men in a multi-agency investigation dubbed 'Operation Shadowbox'. The social club had been a source of complaints from both neighboring businesses claiming drug dealing and prostitution were rampant and wives of some patrons said that their life savings was being gambled away at the club.



More ominously, members of the club were alleged to have purchased drugs and explosives from the Sinaloa cartel. Marijuana was sold out of the club while methamphetamine smuggled in from Mexico would be forwarded to a sister organization in Detroit.

Since January, the DEA and El Cajon police have purchased narcotics, firearms, improvised explosive devices and pharmaceuticals from people at the club, Sprecco said. In April, an undercover operative was shown a hand grenade and was told more were available from a Mexican military source. Suspects in the investigation reportedly arranged narcotics shipments from El Cajon to Detroit.



During the course of the investigation, operatives discovered a suspected association with the Sinaloa Cartel, a Mexico-based drug trafficking organization, and the Chaldean Organized Crime Syndicate, which began in Detroit in the early 80s and has been linked numerous crimes, including murder, arson and kidnapping, Sprecco said.



The investigation resulted in the seizure of drugs including more than 13 pounds of methamphetamine, more than four pounds of ecstasy and pharmaceuticals and about 3,500 pounds of marijuana, Sprecco said. Authorities confiscated more than $630,000 and three luxury cars.



Officers seized 34 firearms, including semi-automatic rifles and four explosive devices, which were processed with the help of the San Diego County Sheriff's Department's Bomb Squad and the FBI, Sprecco said.

The city of El Cajon has the second-highest Chaldean population in the United States after Detroit- the San Diego suburb is home to about 47,000 Iraqi Chaldeans, many of them having immigrated there before the 2003 fall of Saddam Hussein's regime in their native Iraq.



NEW MEXICO: The former police chief of the small New Mexico border town of Columbus has pleaded guilty to trafficking firearms and tactical gear across the border into Mexico on behalf of enforcers for 'La Linea'- a gang of enforcers for the Juarez cartel.

As a participant in the conspiracy, Vega conducted counter-surveillance, used a village-owned Ford F150 truck to transport firearms from the country, pulled over a car of ATF agents at La Linea's request, and tried to get ATF agents to return firearms to Gutierrez after they were seized, Spitzer told the court.



And on Feb. 10, Vega purchased thousands of dollars in body armor, boots, helmets and clothing, including a bulletproof vest for a La Linea leader, whose name was not mentioned in court.



Vega had previously pleaded not guilty to taking part in the conspiracy, in which he and his co-defendants allegedly purchased about 200 firearms - including AK-47-type pistols, weapons resembling AK-47 rifles, but with shorter barrels and without rear stocks, and American Tactical 9 mm caliber pistols - from Chaparral Guns in Chaparral and smuggled them to members of the Juárez-based La Linea cartel between January 2010 and March 2011.



In raids, law enforcement seized 40 of the AK-47 type pistols, more than 1,500 rounds of ammunition and 30 high-capacity magazines before they crossed the border, and found another 12 firearms in Mexico that were traced back to the defendants. Three others were found on three dead individuals in an SUV in Juárez, and others were found at a narcotics bust there, according to federal prosecutors

Former police chief Angelo Vega faces up to 35 years in prison and a $750,000 fine. The village's former mayor- Eddie Espinoza- and village trustee- Blas Gutierrez- have already pleaded guilty for their role in the weapons smuggling case.



Since the arrests, the small 4-man police department has been disbanded and the area is patrolled now by the Luna County Sheriff's Department.

ATF Awarding Promotions to Fast and Furious Architects?

Earlier this week, the Los Angles Times had reported that three supervisor level ATF officials from the agency's Phoenix office were promoted and transferred to Washington D.C.

The three supervisors have been given new management positions at the agency's headquarters in Washington. They are William G. McMahon, who was the ATF's deputy director of operations in the West, where the illegal trafficking program was focused, and William D. Newell and David Voth, both field supervisors who oversaw the program out of the agency's Phoenix office.

McMahon and Newell have acknowledged making serious mistakes in the program, which was dubbed Operation Fast and Furious.



"I share responsibility for mistakes that were made," McMahon testified to a House committee three weeks ago. "The advantage of hindsight, the benefit of a thorough review of the case, clearly points me to things that I would have done differently."



Three Bureau of Alcohol, Tobacco, Firearms and Explosives spokesmen did not return phone calls Monday asking about the promotions. But several agents said they found the timing of the promotions surprising, given the turmoil at the agency over the failed program.



McMahon was promoted Sunday to deputy assistant director of the ATF's Office of Professional Responsibility and Security Operations — the division that investigates misconduct by employees and other problems.



Kenneth E. Melson, the ATF's acting director, said in an agency-wide confidential email announcing the promotion that McMahon was among ATF employees being rewarded because of "the skills and abilities they have demonstrated throughout their careers."



Newell was the special agent in charge of the field office for Arizona and New Mexico, where Fast and Furious was conducted. On Aug. 1, the ATF announced he would become special assistant to the assistant director of the agency's Office of Management in Washington.



Voth was an on-the-ground team supervisor for the operation, and last month he was moved to Washington to become branch chief for the ATF's tobacco division.

Shortly after the Los Angeles Times article, the Justice department confirmed that the three had been transferred to D.C. but defined the move as a 'lateral transfer' to 'adminstrative duties'.



The ill-fated Operation Fast and Furious involved the agency allowing weapons purchased on the American side of the border to 'walk' into Mexico- in many cases against the wishes of ATF field agents- where they would supposedly be tracked to leaders of the different Mexican cartels. No cartel leaders were arrested as a result of Fast and Furous- the weapons instead turned up at the scene of the December 2010 shooting death of Border Patrol agent Brian Terry in Arizona and at several crime scenes south of the border.



Additional House Oversight Committee hearings on Operation Fast & Furious are scheduled for later on this year.



Senator John Cornyn (R-TX) sent a letter to the Justice Department demanding answers to reports that there were similar ATF "gun-walking" programs operated out of Texas.

“Until Attorney General (Eric) Holder and Justice Department officials come clean on all alleged gun-walking operations, including a detailed response to allegations of a Texas-based scheme, it is inconceivable to reward those who spearheaded this disastrous operation with cushy desks in Washington,” said Sen. John Cornyn, R-Texas, a member of the Senate Judiciary Committee.

Last month, acting Director Kenneth Melson admitted to congressional investigators that his agency, in at least one instance, allowed sales of high-powered weapons without intercepting them. Melson accuses his superiors at the Justice Department of stonewalling Congress to protect political appointees in the scandal over those decisions.

August 14- Navajo Code Talkers Day

Navajo Code Talker Joe Morris Sr in 2007 photo

Twenty nine years ago yesterday, President Ronald Reagan issued a proclamation that August 14 be known as Navajo Code Talkers Day. This was among the first official acts of recognition since the program was declassified in 1968.

"Now, Therefore, I, Ronald Reagan, President of the United States of America, do hereby designate August 14, 1982, as National Navaho Code Talkers Day, a day dedicated to all members of the Navaho Nation and to all Native Americans who gave of their special talents and their lives so that others might live. I ask the American people to join me in this tribute, and I call upon Federal, State and local officials to commemorate this day with appropriate activities."

[Sorry I'm a day behind with this, by the way- NANESB!]



At the outbreak of WWII, it was believed that there were no more than 30 non-Navajo people in the world familiar with the language- none of them Japanese.



Sensing an opportunity to confound Japanese eavesdroppers, in 1942 Marine Corps brass began gathering and training Navajo recruits to create and communicate a code in their native Navajo tongue. Throughout the war, Imperial Japanese military cryptographers were never able to decipher the Navajo's code. However, after the war, the program remained secret and the departing Navajo recruits were sworn to secrecy until the Code Talker project was declassified in 1968.



The Code Talkers participated in nearly every Marine assault in the pacific theater between 1942 and 1945. To this day, the Navajo Code Talkers proved to be the most effective known means of encrypted communication in modern warfare.



On Sunday, July 17th Code Talker Joe Morris Sr passed away at age 85 from complications due to a stroke at the VA Medical Center in Loma Linda, CA.



Morris had just turned 17 and was working in an Arizona mine when he was drafted in 1943. He credited a Navajo medicine man that also worked in the mine with keeping him safe throughout the war, saying that the shaman prayed a day and a half for his safety. After the war, Morris married and settled in Dagget, CA where he had a civilian job with a Marine supply center until he retired in 1984.



Joe Morris Sr is survived by his wife of 61 years, two sons, a daughter, three brothers and three grandchildren.

Arizona Gun Store Sues Feds Over ATF Order Requiring Tracking of Long Gun Sales in Border States

A Yuma, AZ gun shop is one of two plaintiffs suing the Bureau of Alcohol Tobacco & Firearms over a directive to report multiple sales of long guns at gun stores in border states.

The directive, which was passed last month, requires that stores report to the ATF purchases of two or more semiautomatic rifles greater than .22 caliber over the span of five days. The ATF Order comes amid Congressional hearing on the ATF's disatrous Operatation Fast & Furions in which senior ATF officials ordered field agents to allow guns purchased by suspected straw buyers in the USA to 'walk', i.e. be illegally exported to Mexico where they were sold to cartels and other criminal organizations before eventually turning up at crime scenes on both sides of the border- including the fatal December 2010 shooting of US Border Patrol Agent Brian Terry.

The move comes after gun control advocates met with Obama administration and Justice department officials earlier this year. In a quote attributed to none other than Sarah Brady, President Obama assured prominent gun control adovcates in a meeting that he was working on gun control 'under the radar'- in other words, through regulatory means and executive orders instead of leaving the volatile and often unpopular issue to the Senate or House of Representatives prior to an election year.

While at first blush, the ATF directive may not seem particularly onerous, kindly consider that this is the agency whose senior officials allowed thousands of weapons to be illeaglly exported to Mexico where they were used by criminal gangs and cartels to kill scored Mexican civilians, public officials, police officers and soliders. Now THE VERY SAME AGENCY is responsible for enforcing this directive?

Even more galling, many retailers were repeatedly warning the ATF about suspicous customers during the Fast & Furious operation; the agency urged them to continue with the transactions nonetheless.

It's also worth contemplating how this month-old directive would prevent arms trafficking when according to diplomatic cables released via Wikileaks, the Mexican cartels are increasingly arming themselves with military-grade weaponry such as rocket launchers, grenades and plastic explosives from poorly-guarded military armories in Central America, not semiautomatic rifles or shotguns from US retailers.

Borderline Psychosis Update- Fast & Furious Twin in Fla?; PEMEX Files Suit Over Stolen Oil; If a Tree Falls in the Woods, did the Zetas Cut it Down?

NEW MEXICO: The former mayor of the small border town of Columbus, NM pled guilty to multiple counts of weapons smuggling four months after his arrest.

Eddie Espinoza, 51, pleaded guilty to one count of conspiracy, three counts of smuggling firearms from the United States and three counts of making false statements.

Former NM mayor admits to gun smuggling: krqe.com

Federal documents state the group smuggled more than 200 guns from New Mexico to the streets of Cíudad Juárez and Palomas, Chihuahua. The documents further state that at times the group used unmarked police cars registered toColumbus to smuggle the guns across the border. Agents had been following the illegal operation for more than a year.

Espinoza is the fourth person to plead guilty in this case so far.

Earlier this month, the village board voted to eliminate the four-man police department as a cost-cutting measure. The Luna County Sheriff's Department will be responsible for patrolling the area now.

In another development on the Columbus case, the El Paso US Attorney's office recently took over the case from the New Mexico US Attorney, although the Justice department has been tight lipped about the reasons behind the switch.

ARIZONA: Recently leaked memos from the Arizona Deparment of Public Safety confirm that Hezbollah has established ties with some of the Mexican cartels in establishing smuggling routes and warn that the terrorist organization may be stockpiling heavy weaponry south of the border.

As evidence, it points to the 2010 Tijuana arrest of Hezbollah militant Jameel Nasr, who was allegedly tasked with establishing a Hezbollah network in Mexico and South America. The memo also recalls the April 2009 arrest of Jamal Yousef in New York, which exposed a huge cache of assault rifles, hand grenades, explosives and anti-tank munitions. According to Yousef, the weapons were stored in Mexico after being smuggled from Iraq by members of Hezbollah.

The memo warns that consequences of partnerships between Hezbollah and Mexico's drug partnerships could be disastrous for Mexico's drug war, given Hezbollah's advanced weapons capabilities — specifically their expertise with improvised explosive devices (IEDs). It notes that some Mexican criminal organizations have started using small IEDs and car bombs, a marked change in tactics that indicates a relationship with Islamic militants

Hezbollah is already active in the tri-border/Iguazu region of South America where the borders of Argentina, Brazil and Paraguay meet.

Some experts, while aware of Hezbollah's presence in Mexico, claim that while the organization may have no immediate plans for attacking the USA, the terrorist organization raises funds through criminal activity in Mexico and the USA.

FLORIDA: A possible counterpart to the ATF's Phoenix-based Fast & Furious has come to light in Florida in recent weeks. Guns from a suspected trafficker in Florida under surveillance by the ATF had begun turning up in Puerto Rico, Honduras and Colombia in 2010.

At the center of the operation is 63-year-old Hugh Crumpler III, a well-known Central Florida bass fishing guide and tournament pro. He and 10 others have been charged -- six of whom were in the country illegally. Nine, including Crumpler, are scheduled for sentencing next month in federal court in Orlando. The other two are fugitives and are believed to have fled the country.

Crumpler, who lives in Palm Bay, has admitted to selling the guns and knowing most of them were going out of the country to places such as Honduras, according to court documents. Records show three guns Crumpler bought were used in crimes in Puerto Rico, one just nine days after he bought it. Another gun was used in a homicide in Colombia 66 days after he bought it.

The reports prompted a letter from Congressman Gus Bilirakis (R- FL9) to the ATF enquiring about the scope of Operation Castaway and whether or not the agency allowed any weapons to be 'walked' to Central America or Colombia.

NUEVO LEON: A few weeks ago, Reuters ran a special report titled If Monterrey Falls, Mexico Falls highlighting how the northern industrial center has largely been spared the bloody narco-violence spasming the rest of the country so far, but how that is changing.

If there's any merit to using Mexico's main industrial center as a barometer, then Mexico's problems have only just begun, as the violence in the city has escalated with gunmen massacring 17 people at a bar in the city last weekend.

Monterrey, a major industrial hub, has seen a spike of violence since the Gulf and Zeta cartels began fighting for control of drug traffic there two years ago.

The medical examiner's official said his office has recovered 17 bodies, including those of women, from the crime scene. He spoke on the condition of anonymity because he was not authorized to speak on the record.

Police sources would not confirm the number of dead people with The Associated Press and referred the AP to local prosecutors, who are not giving an official account of the shooting.

Federal police spokesman Jose Ramon Salinas said that high-powered weapons used in the shooting indicated it might have been a drug cartel confrontation.

The uptick in violence in Nuevo Leon could be attributed to violence from neighboring Tamaulipas spilling over.


MICHOACAN: As the cartels have begun expanding their operations into illegal logging, one mountain village is barricading itself in an attempt to preserve the nearby old growth forests.

Masked and wielding rifles, the men of this mountain town stand guard at blockades of tires and sandbags to stop illegal loggers backed by drug traffickers. Their defiance isn’t just about defending their way of life; it’s one of the first major challenges to the reign of terror unleashed by Mexico’s drug cartels.

The indigenous Purepecha people of this town surrounded by mountains of pine forests and neat farmland took security into their own hands last month after loggers, who residents say are backed by cartel henchmen and local police, killed two residents and wounded several others.

“There is no fear here,” said one young man, defiantly peering out between a red handkerchief pulled up to his dark eyes and a camouflage baseball cap riding low over his brow. “Here we are fighting a David-and-Goliath battle because we are standing up to organized crime, which is no small adversary.”

Nearly all residents in the town of 16,000 in the southwestern state of Michoacan spoke to reporters on condition of anonymity because of safety concerns.

The Cheran rebellion is one of the few examples of a town standing up to drug cartels since President Felipe Calderon launched his crackdown on organized crime in late 2006, sparking a national wave of violence that has killed at least 35,000 people. Most Mexicans are too frightened to openly fight back against gangs that have terrorized the country with beheadings and massacres. Some towns in northern Mexico have emptied as cartels move in.

The rebellion in Cheran caught the attention of the federal government, which deployed troops and federal police last week to patrol the outskirts of the town.

“La Familia has the heaviest presence in the zone. Everything indicates that it’s them because they have the biggest presence, but we can’t say for sure,” said David Pena, a lawyer who has been representing the community in negotiations for protection with the federal government.

Disputes over communal woods — between those who want to log indiscriminately and those who subsist on forest products — has long been a source of conflict in southwestern Mexico. The federal government has stepped up efforts against deforestation, conducting raids and shutting down illegal sawmills.

But rogue loggers have become more violent as they align themselves with drug cartels, said Rupert Knox, a Mexico researcher at London-based Amnesty International, which has investigated the crisis in Cheran.

“Illegal logging has gone hand-in-glove with criminal gangs. They have moved into that sphere and controlled it with extreme brutality and corruption of local officials,” Knox said.

The animosity came to a head in Cheran when residents captured five illegal loggers on April 15 as their truck attempted to smuggle out illegally harvested wood.

Two hours later, a convoy of armed men rumbled into the town to free the detained loggers, accompanied by local police, according to Pena and Amnesty International. One Cheran man was shot in the head and remains in a coma. But the townspeople, through force of numbers, managed to drive out the gunmen.

In apparent reprisal, loggers shot and killed two Cheran men and wounded four others who were patrolling the woods on April 27.

Angry Cheran residents stormed the local police headquarters, seizing 18 guns. They swiftly barricaded the town, piling sandbags and tires beneath plastic tents at several checkpoints along the main road. Young men with rifles keep track of residents venturing out and question anyone trying to get in.

Classes have been suspended at the town’s more than 20 schools, which draw students from neighboring communities because both Spanish and the Purepecha language are taught. Instead, young boys hang out at the barricades, covering their faces with handkerchiefs and pretending to patrol with plastic toy guns.

“Everything is paralyzed out of fear that this gang might attack the children,” said a soft-spoken man wearing a white bandana and a black wool cap at a checkpoint.

The municipal police dissolved itself. Mayor Roberto Bautista Chapina reported the guns stolen but has otherwise stayed out of the dispute, trying not to inflame tensions. He said the Cheran men attacked the police chief and grabbed his gun.

Community leaders and Interior Department representatives met Tuesday in the state capital of Morelia and agreed on a long-term security plan, Pena said. The government promised to set up two bases outside the town for army troops and federal and state police, who will patrol the hills and forests and meet weekly with Cheran leaders. Residents will be allowed to keep protecting the town on their own.

Among many observers, this is thought to be the most direct challenge to the cartels since the reported last stand of rancher and businessman Don Alejo Garza last year. It's also worth noting that as an organization, La Familia is pretty much finished thanks to infighting and it's leadership on the run or imprisoned with the rest of the organization reconstituting themselves into the Knights Templar.

ELSEWHERE IN MICHOACAN: Speaking of the Knights Templar, Mexican Federal Police have arrested the man they claim oversees killings for the young organization. Javier Beltran Arco- aka 'El Chivo'- was arrested along with two lookouts in Michoacan this month. Also seized were two pounds of methamphetamine and three automatic rifles.

At the Lazaro Cardenas seaport, officials also intercepted containers from Shanghai, China carrying 44 metric tons worth of chemicals used to manufacture methamphetamine.

TEXAS: PEMEX, Mexico's state run oil company, has filed a lawsuit against nine companies in the US District Court in Houston, TX last month. The suit alleges that the nine companies and two individuals named in the suit have either willingly or unknowingly received oil stolen from PEMEX pipelines.

Pemex said the suit is intended to "combat the theft and smuggling of gas condensate from its facilities in northern Mexico," including tanker trucks hijacked at gunpoint in northern Mexico. The thefts involved dozens of tanker-truck loads.

The suit does not claim any of the U.S. firms participated in the actual robberies, but says some knowingly conspired to ship the stolen goods, while others unwittingly handled them.

"All of the defendants have participated and profited, knowingly or unwittingly, in the trafficking of stolen condensate in the United States," the suit says, referring to a mix of oil liquids produced as a byproduct of natural gas wells.

"Some of the defendants knew, or at least should have known, they were trading in, or transporting, stolen condensate," the suit says. "Others were ignorant that they were purchasing stolen goods. In either case, however, the defendants took possession of Mexico's sovereign property without right or title. All defendants are therefore liable for their individual usurpation of Mexico's patrimony."

The lawsuit does not name a specific amount of damages being sought, but argues that the sued companies are liable for part or all of the $300 million in oil stolen since 2006.

Pemex has "lost large amounts of its condensate, at times approaching 40 percent of the production of condensate from the Burgos Field," the suit says.

A joint U.S.-Mexico investigation in 2010 found that smuggled oil stolen from Pemex was being transported across the border and sold to U.S. refineries. The Mexican government has said drug cartel members and other criminals are responsible for many of the oil thefts.

This would not be the first time organized crime in Mexico branched out into the theft and resale of stolen natural resources as the value of said resources went up.

PEMEX, for its part, has claimed that a crackdown earlier this year has led to a decline in the amount of oil stolen from the national oil company's pipelines, but the thieves have been switching tactics as well as allegedly employing the cartels to help them smuggle and sell off the stolen product.

Gangs are still believed to earn hundreds of millions of dollars a year tapping Mexico's vast, but largely unprotected, pipeline network

We're seeing changes. They are tapping into (propane) pipelines. We've also found some double taps that the criminals use to inject water into the pipes to stop the detection of a loss of pressure," Pemex Chief Executive Juan Jose Suarez said during testimony before a congressional panel last week.

Fuel thieves traditionally focused on stealing gasoline and diesel for sale on the local black market, but gangs increasingly have set their sights on crude oil.

Pemex found 712 connections to its network last year, nearly double the number found the year before and five times the amount detected in 2005.

Two crude pipelines were the most tapped nationwide last year with 191 illegal connections, up from only five in 2005.

Pemex believes thieves siphoned off about 10,000 barrels of crude worth more than $700,000 every day last year.

Officials say the crude most likely ends up with brickmakers and other industrial customers who use it as a substitute for boiler fuel. Privately they admit criminals may be smuggling the oil out of Mexico, given the relatively small size of the domestic market for industrial boiler fuel.

Drug cartels, which extort protection money from fuel theft gangs who are often made up of current and former oil industry workers, are believed to provide the expertise to smuggle siphoned oil into the United States.

Court papers indicate that Mexican and U.S. authorities believe the Zetas cartel helped one gang move up to $300 million in condensate -- a liquid byproduct of natural gas used to make plastics -- into Texas by bribing customs officials, using false transit documents and hiring middlemen to sell it to some of the world's largest chemical companies.

A similar scheme with crude would be easy to replicate and hard to detect due to the huge size of the oil market. Pemex officials say the origin of the smuggled crude can be easily concealed by blending it with legitimately-obtained oil.

The companies named in the suit include Big Star Gathering LTD, F&M Transportation Inc., Western Refining Company LP, Joplin Energy LLC, Superior Crude Gathering Inc., Plains All-American [NYSE- PAA], TransMontaigne Partners LP of Denver, Colorado [NYSE- TLP], SemCrude LP of Oklahoma City, Oklahoma, and Saint James Oil Inc. of Sandy, Utah.

MEXICO CITY: Another seemingly mundane avenue that various cartels have muscled into include movie piracy.

Led by the notorious La Familia and Los Zetas drug mafias, Mexican cartels now take a big cut of the hundreds of millions of dollars in bootleg disks sold in Mexico each year, according to U.S. officials and representatives of film studios and software manufacturers.

“This is no longer a victimless crime. There is blood on the product,” said Federico de la Garza, managing director of the Motion Picture Association in Mexico City, whose own investigators work closely with the Mexican attorney general.

Disk piracy and U.S. copyright violations are a challenge around the world, but in Mexico the sale of bootleg copies of “Toy Story 3” and Microsoft Windows XP are funding the powerful mafias whose relentless violence has left more than 35,000 Mexicans dead in the past four years.

Mexico has become the pirate capital of Latin America, exporting so many bootleg movies to Central America, for example, that the major studios no longer bother to sell their products on the shelves there, according to industry watchdogs.

And in Cancun or Monterrey or Tijuana, when you buy a bootleg Disney movie for the kids, it is as likely as not to bare a stamp that shows it was distributed by the Zetas (a stallion) or La Familia (a butterfly).

Video piracy is ubiquitous in Mexico, where more than nine of 10 movie DVDs sold are counterfeits. Mexican authorities rarely seize products from street dealers or market stalls. U.S. officials in Mexico suspect many vendors give kickbacks to local authorities to allow them to operate.

While its likely that they aren't producing the bootleg DVDs themselves, the cartels usually make their money through taking over distribution routes and demanding protection money from vendors operating in territory they've taken over.


BAJA CALIFORNIA: Mexican soldiers detained 58 people and seized an estimated US$160 billion worth of pot after stumbling across a massive 300 acre marijuana plantation in the northern part of the state last month.

Mexican officials call it the largest seizure of marijuana on record and claim that the plantation had been operational for less than four months.

Army officers said that the crop was discovered under canopies less than two miles off of Route 1, the main highway that traverses the Baja Peninsula. Although 58 people were taken into custody at the time of the raid, it appears that nearly twice as many people were working there. Although the territory was controlled by the Tijuana-based Arellano Felix cartel, that organization was one of the first organizations to have been undermined by President Calderon's stepped up attacks against the narcos.

A spokesman for the Mexican Army's second region believes that Joaquin 'El Chapo' Guzman's Sinaloa cartel had a hand in setting up the massive plantation.

TAMAULIPAS: At least 60 inmates managed to escape a state prison in Nuevo Laredo in a jailbreak that was thought to be orchestrated by Los Zetas, across the Rio Grande from Laredo, TX.

Seven prisoners were also killed during the escape, which the government said was preceded by a large-scale fight between inmates. Five employees of the prison, the Centro de Ejecución de Sanciones (CEDES), also deserted their posts. Thirty-five of the inmates were being jailed on federal charges.

The escape marks the second time in eight months the city has seen a mass exodus of criminals from the prison. In December about 140 inmates escaped, which Cuellar attributed to a plan orchestrated by the Zetas to swell its ranks after suffering heavy losses throughout its ongoing battles against rival gangs and law enforcement. The sheriff could not confirm that today’s escape was part of a similar plan.

Between January 2010 and March 2011, more than 400 inmates have escaped from five prisons operated under the state's authority in Tamaulipas.

[Hat tip: Correspondence Committee; Borderland Beat; Friends of Ours]

Reports: Acting ATF Director May Resign Over Fast & Furious Program; WaPo Covers For Obama Administration

Kenneth Melson, the acting director of the Bureau of Alcohol, Tobacco, Firearms and Explosives is expected to step down in the next couple of days in the wake of controversy and damning testimony from field agents before a Congressional oversight committee.

In the operation, straw buyers were allowed to purchase illegally large numbers of weapons, some of which ended up in the hands of cartels in Mexico.

Attorney General Eric Holder will meet Tuesday with Andrew Traver, head of the ATF field office in Chicago, about possibly becoming the agency's acting director, according to senior federal law enforcement sources, who are familiar with the details of the controversy.

The Justice Department refused comment. White House press secretary Jay Carney told reporters he had no new information on the issue.

The operation has come under intense criticism since the December killing of a U.S. Border Patrol officer.

Operation Fast and Furious was "a colossal failure of leadership," Peter Forcelli, a supervisor at the bureau's Phoenix field office, said recently.

The program focused on following people who legally bought weapons that were then transferred to criminals and destined for Mexico. But instead of intercepting the weapons when they switched hands, Operation Fast and Furious called for ATF agents to let the guns "walk" and wait for them to surface in Mexico, according to a report by the House Oversight and Government Reform Committee.

The idea was that once the weapons in Mexico were traced back to the straw purchasers, the entire arms smuggling network could be brought down. Instead, the report argues, letting the weapons slip into the wrong hands was a deadly miscalculation that resulted in preventable deaths, including that of Border Patrol Agent Brian Terry.

Terry was killed last year north of the Mexican border in Arizona after confronting bandits believed to be preying on illegal immigrants. Two weapons found near the scene of the killing were traced to Fast and Furious.

"I was flabbergasted. I couldn't believe it at first," Terry's mother, Josephine, said when she learned the ATF may have let some of the guns used in the attack slip through its fingers. Terry's relatives said they want all those involved in his killing and who helped put the weapons in their hands to be prosecuted.

"We ask that if a government official made a wrong decision, that they admit their error and take responsibility for his or her actions," Robert Heyer, Terry's cousin and family spokesman, said in a hearing last week by the House panel.

Reportedly, the Obama Administration is tapping former Chicago ATF Chicago branch head Andrew Traver to head the agency should Melson resign. Traver appeared in a misleading 2009 segment on a Chicago NBC affiliate's report on gang warfare implying that gangs were arming themselves with military style weapons purchased from retail outlets. Traver also reportedly supported Illinois Attorney General Lisa Madigan's recent efforts to make public the name of Firearms Owner Identification Card (FOID) holders to the press available on request.

The successful nomination or appointment of Andrew Traver to the head of the ATF would basically be rewarding the Department of Justice and Obama Administration for this clusterfuck known as Fast & Furious.

In what can only be described as a pathetic, flailing attempt at damage control on behalf of the Obama administration, the Washington Post began circulating reports on Tuesday evening that House Oversight Committee chair Darrell Issa had already been briefed on Fast & Furious as far back as April 2010.

At the briefing last year, bureau officials laid out for Issa and other members of Congress from both parties details of several ATF investigations, including Fast and Furious, the sources said. For that program, the briefing covered how many guns had been bought by “straw purchasers,’’ the types of guns and how much money had been spent, said one source, who spoke on the condition of anonymity because the briefing was not public.

“All of the things [Issa] has been screaming about, he was briefed on,’’ said one source familiar with the session.

Wow...so even if I were to take the WaPo's VERY convenient anonymous source at face value that there was a private briefing for members of both parties regarding Fast & Furious, according to the WaPo, they discussed the number and types of guns purchased by 'straw buyers' and how much money was spent. I wonder if THE ATF INTENTIONALLY ALLOWING THE WEAPONS TO BE FORWARDED TO MEXICAN CRIMINAL ORGANIZATIONS came up in that same briefing.....which took place when the Democrats had a supermajority in the House of Representatives and were focusing on things like 0bamacare, cap and trade or card check.

Probably not- I'd like to think that if that was explicitly mentioned to members of Congress in that aforementioned briefing the WaPo assures us took place, that members of both parties would've demanded answers and hearings into exactly what the hell the ATF was doing right then and there.

But that's just me.

ATF Gunrinning Operation to Mexican Cartels- AKA 'Fast & Furious'- Comes Under Congressional Scrutiny This Week

Border Patrol Agent Brian Terry- slain in December 2010. Weapons from ATF's Operation Fast & Furious Were recovered at the crime scene along the Arizona/Mexico Border

Earlier this week, certain politicians and media outlets that support gun control were frantically out there trying to establish the 70% myth [i.e. the narrative that '70% of the weapons recovered in Mexico' come from America, which curiously is down from 90% in a few short months- NANESB!] just days ahead of the House Committee on oversight and Government Reform hearings into the Bureau of Alcohol, Tobacco & Firearms operation Fast & Furious.

As predicted, this is one of the downside of the Anthony Weiner fiasco- probably the most important Congressional hearings in three decades is usurped by the media circus surrounding the former Congressman from Queens. Outside of CBS News' Sheryl Atkinson, the Bureau of Alcohol, Tobacco & Firearms poorly-conceived Operation FAst & Furious didn't get alot of coverage in the mainstream media- let alone the Congressional inquiry.

The full committee hearings got underway at Capitol Hill on Wednesday with testimony from Brian Terry's family, 6 months to the day after the Border Patrol was shot and killed by Mexican smugglers armed with AK-variant rifles acquired by straw purchasers who were under surveillance as part of the ATF operation. Yet instead of interdicting the guns before they could be moved across the Mexican border, field agents were ordered the allow the guns to 'walk'. Two of the guns found at the scene of Terry's murder were part of thousands the ATF allegedly allowed gun traffickers to purchase.

The ATF called it letting "guns walk" -- a tactic they hoped would lead to them to drug kingpins. Agents who disagreed with the strategy blew the whistle.

"To walk a single gun is in my opinion an idiotic move," said ATF senior special agent Pete Forcelli. "We weren't giving guns to people who were hunting bear. We were giving guns to people who were killing other humans."

After Terry's murder, ATF quickly rounded up gun trafficking suspects they'd watched for a year. That's when the first reports of gunwalking began to surface. Asked if they were true at the time, ATF Phoenix chief Bill Newell told reporters "hell no" -- surprising those who worked for him.

"I was appalled, because it was a blatant lie," Forcelli said. Newell didn't respond to interview requests.

Also under attack: the Justice Department which oversees the ATF. Assistant Attorney General Ronald Weich says the agency is cooperating with Congress, but Rep. Darryl Issa says information is being withheld.

"You should be ashamed of yourself," Issa said at the hearing Wednesday holding up a blacked-out sheet of paper. "The pages go on like this forever. You've given us black paper instead of white paper. How dare you make an opening statement of 'cooperation.'"

Issa pressed Weich on who in Washington authorized the program -- and received no answer.

"There was serious profound disagreement about strategy -- but the common goal was to stop gun trafficking to Mexico," Weich said. "Some of the testimony provided today is of great concern. That is why the attorney general asked the inspector general to look into it."

When Brian Terry was gunned down last December, he'd already mailed Christmas gifts.

"The gifts that Brian had picked out with such thought and care began to arrive in the mail that same week," recalled Terry's cousin Robert Heyer, a Secret Service agent. "With each delivery, we felt the indescribable pain of Brian's death."

Terry's family wants someone to accept responsibility. The Department of Justice inspector general is investigating -- and any gunwalking that was taking place has been halted.

Perhaps to nobody's surprise, the Democrats on the Oversight Committee attempted to make the hearings about gun control rather than any sort of accountability from the Department of Justice or ATF. On top of apologizing to Assistant Attorney General Ronald Wiech after Committee Chair Darrel Issa (R- CA49) berated the Justice Department official for turning over pages of redacted documents in response to a subpoena, Representative Elijah Cummings (D- MD7) has proposed setting up a separate minority-led hearing with witnesses of his choosing. In doing so, the Democrats have demonstrated that they are deliberately ignoring the fact that even if the entire United States had strict gun control laws reminiscent of Chicago or Washington D.C. there's still the fact that it was a government agency that facilitated the acquisition of at least 2000 weapons to Mexican criminals. On top of that, US Diplomatic cables released by wikileaks indicate that the overwhelming number of weapons seized in Mexico- including explosives, grenades and anti-tank weapons- are actually procured by cartels from poorly-guarded military armouries in Central America before being smuggled into Mexico.

[I know I've asked this before, but it bears repeating- the Los Zetas organization is mostly comprised of former soldiers from the Mexican army, including Special Forces. Now, keeping in mind their connections to not only the black market, but the international arms market- why should I believe for a second that they are shopping for guns at Cabela's or Wal Mart?- NANESB!]

Weapons allowed across the border under Fast & Furious (or Rapido y Furiosa in the Mexican press) continue to turn up throughout Mexico- in April, Mexican police raided a house in Ciudad Juarez that turned up a half dozen Romanian-made AK-variant rifles that were traced back to the ill-conceived ATF operation [the raid also turned up dozens of grenades and three anti-aircraft machine guns, which probably weren't purchased from American gun stores- NANESB!] .

In May, Mexican soldiers came under fire and a Mexican Air Force helicopter was forced to make a crash landing during an anti-narcotics operation in Michoacan- weapons seized from there were also traced back to Fast & Furious.

Some of the preliminary findings of the Committee include:

● Agents expected to interdict weapons, yet were told to stand down and “just surveil.” Agents therefore did not act. They watched straw purchasers buy hundreds of weapons illegally and transfer those weapons to unknown third parties and stash houses.

● ATF agents complained about the strategy of allowing guns to walk in Operation Fast and Furious. Leadership ignored their concerns. Instead, supervisors told the agents to “get with the program” because senior ATF officials had sanctioned the operation.

● Agents knew that given the large numbers of weapons being trafficked to Mexico, tragic results were a near certainty.

● Operation Fast and Furious contributed to the increasing violence and deaths in Mexico. This result was regarded with giddy optimism by ATF supervisors hoping that guns recovered at crime scenes in Mexico would provide the nexus to straw purchasers in Phoenix.

That last finding is sure to anger Mexico, which has so far been muted in its criticism. In a March 2010 memo, ATF says it allowed gun smugglers to buy 359 guns while 958 people died in Mexico the same month. Internally, the agency was “trumpeting up the violence that was occurring as a result of an ATF sanctioned program

A full PDF file of the Committee's reports can be found HERE

Prior to the hearings and Agent Terry's murder, a number of gun stores in Arizona, Texas and New Mexico went to the ATF with their concerns about suspicious transactions and concerns that the guns could be used against Border Patrol agents and other lawmen. However, the ATF assured dealers that the suspected straw purchasers and the guns purchased were being 'continually monitored'. More disturbingly is that the ATF reportedly didn't even bother contacting Mexican law enforcement (however compromised, corrupt or ineffective) or military to let them know that criminals were trafficking weapons from the USA to their jurisdiction- not even after Fast & Furious guns were recovered at crime scenes south of the border.

So in a nutshell, you had the supervisors in the ATF facilitating the sale of guns to Mexican cartels through proxies to prove that Mexican cartels were getting firearms from American stores.

[Cross posted on Pundit Press]