katie couric. to want, erica hill in new york and harry smith on the gulf coast. >> smith: good evening, katie is off. in better times, this resort town is one of the jewels of the gulf coast but it's reeling from the effects of the b.p. oil disaster. tonight the rough weather is only making things worse. the coast guard has pulled all the ships that have been skimming oil along the gulf coast back to shore. bad news because more oil has been washing up in mississippi and louisiana hundreds of miles at sea, alex is churning through the gulf and is expected to become a hurricane. landfall is projected early thursday morning in mexico. but hurricane warnings extend from south of the border up to texas. as for the leak, more than a million gallons of oil is still spewing into the gulf each day. b.p. is now working on a new plan "b" to stop the flow that's just in case the relief wells don't work. but on day 71, the weather is the big story. high seas and strong winds continue to thrash the gulf today, forcing skimmers and other support boats in lee states to retreat to shore. a second day of valuable cleanup time lost to the weather. the cleanup was at the top of vice president joe biden's agenda today as he met with officials at the unified command center in new orleans. biden also met with locals hit hard by the disaster. >> it's about families, it's about entire tradition and culture. it's... and we need to stop the oil from flowing out of the bottom of that gulf in order to save those families. y'all have been hit with katrina and gustav and now the b.p. spill. >> reporter: pensacola's joe campus stands to lose $100,000 of business to the spill. joe uses his 50-foot boat to compete in championship fishing tournaments. every one of which has been canceled. how frustrating is this for you? >> it's frustrating because i grew up here. i've lived here my whole life. i've fished my whole life and everybody that lives here on the gulf coast has been affected. >> smith: to have been the point where joe is putting his boat up for sale. this just must feel like it's never ending. >> i think that's one of the biggest things, the uncertainty of this. and not knowing when it's going to stop because really, really, what's the most frustrating thing about all of this. >> smith: another big issue on the gulf coast is the obama administration's six-month moratorium on deep-sea drilling. as it winds through the courts, tens of thousands of oil workers are in limbo. in louisiana, oil is a $70 billion business. if the moratorium becomes permanent, it could cost the state more than the spill itself. mark strassmann is in grand isle tonight with more. mark? good evening. >> reporter: good evening, harry. so much of this coast lives off deep water drilling and the industry has been shut down in turmoil. b.p. has set up a compensation fund but it's not nearly enough. >> this dock should be full. >> reporter: at this dock, what matters what you don't see. >> trucks rolling in and out, cranes swings. >> reporter: we see next to nothing. >> nothing. >> reporter: so little activity here, dwayne rebstock could lose his company. his 30 employees load and unload ship that service deep water drilling. at fort fourchon, they last unloaded one three weeks ago. his business is down 90%. >> everyone's in the same boat we are. >> reporter: how much of that is moratorium? >> 100%. >> reporter: all 33 deep water rigs have shut down production, too much uncertainty. a six-month federal moratorium was lifted but another is on its way. b.p. has set up a compensation fund of $100 million, but this industry can lose as much as $330 million a month in wages with 120,000 jobs on the line whafpt you're looking at here is some of the new thick oil that washed up again today. every new wave is another remainer of why the obama white house imposed the moratorium in the first place. >> our people want to go back to work. >> reporter: louisiana's leaders want more help. governor bobby jindal met with dwayne rebstock. >> your employees can't move. >> reporter: employees like mcmcgiver. >> no way to start over again. >> reporter: if he's laid off, this 51-year-old grandfather says b.p.'s compensation may be his only hope. >> i get up at 2:00, sit with the wife, talk about what's going to happen, i leave at 3:30, 4:00 to come over here hoping i can make another day. >> reporter: dwayne rebstock has started laying off employees. he figures at this rate his company will survive a month more. maybe two. harry? >> smith: mark strassmann in grand isle, thank you so much. this town, pensacola beach, has had its share of rough times. the locals had high hopes for this summer until the b.p. disaster. i'll be back later with a look at how some are facing the dark days ahead. but first, let's turn it back to erica hill in new york. erica? >> hill: harry, thanks. general david petraeus is just about ready to take charge in afghanistan. today a senate committee wasted no time in approving his nomination to succeed ousted general stanley mcchrystal. david martin is at the pentagon for us tonight. david, good evening. >> reporter: good evening, erica. after one of the most mind-boggling shakeups in american military history, general petraeus cut straight to the bottom line. "my job" he said "is to stop whining and get on with it." as if to prove he could hit the ground running, petraeus repeatedly referred to a phone conversation he'd had with afghan president karzai on the way to his senate confirmation hearing. he also said he is not planning major changes in general mcchrystal's battle plan. >> by and large i think that this is more about executing now than it is about redesign. >> reporter: that includes mcchrystal's controversial restrictions on the use of air strikes which have killed afghan civilians. in this strike two years ago, a woman steps out on to a balcony just second before a bomb hits. >> and if there are civilian in the house, if you don't know who's in the house, you need to think twice before you take out the house. >> reporter: petraeus also says he agrees with the july, 2011, date set by president obama to begin withdrawing from afghanistan. although he made it clear it wasn't the military's idea. >> was there a recommendation from you or anyone in the military that we set a date of july, 2011? >> there was not. >> it was not by any military person that you know of? >> not that i'm aware of. >> reporter: petraeus pointed out the july, 2011 date was set last fall this the president's speech at west point based on projections at the time. since then, the war has gone slower and harder than expected. but vice president biden has predicted that in july of 2011 you're going to see a whole lot of people moving out of afghanistan. today, petraeus revealed a private conversation in which the vice president seemed less of a pullout hard-liner. >> the vice president grabbed me and said "you should know that i am 100% supportive of this policy." and i said that i'm reassured to hear that. >> reporter: as for mcchrystal, he can now retire as a four-star general. the president has waived the rules that would have required him to retire at a lower rank with less pay and benefits. erica? >> hill: general petraeus will command not just the u.s. forces in afghanistan but the entire nato-led coalition. 150,000 troops who are just completing the deadliest month of the war so far. at least one hundred coalition troops have been killed in june, including 54 americans. nearly 400 more americans were wounded, many take on the the military hospital at bagram airfield, as mandy clark reports >> reporter: america's longest war is growing more deadly. u.s. and nato troops are being killed and injured almost daily when marines pushed into marjah last february. corpsesman robert scott elder helped treat his injured colleagues, now he's a casualty himself at bagram's military hospital. >> i remember waking up and my gunner was bleeding out of his head and so was i and i reached in my pocket and i was pulling out gauze and wrapping my gunner up. >> reporter: improvised explosive devices, or i.e.d.s placed at the side of the road, are the fastest-growing dangers troops face. last year, the number of i.e.d. attacks doubled and they're more deadly, accounting for two-thirds of all casualties. staff sergeant nicholas richards survived two i.e.d. strikes with no broken bones but has a traumatic brain injury. >> so i'm not able to remember much so they write me notes about what happened so when i wake up from a nap or something they can remind me. >> reporter: june has been a bitter month. the commanders here say increased fight willing mean increased casualties. typically for every death there are two injured and the number of wounded is expected to triple by the end of summer. and hundreds more could join injured troops here. others will head back to the front line and to a fight that's never been as dangerous. mandy clark, cbs news, bagram airfield, afghanistan. >> hill: now to those ten suspects secret agents arrested here in the u.s. some are believed to be russian citizens. today russia's foreign ministry called the charges that they were here working for the kremlin "baseless." but federal prosecutors say they could be just the tip of the iceberg and national correspondent jim axelrod reports some people are now wondering just how well they know their neighbors. >> reporter: it felt like a time warp in the new york city suburb of montclair, new jersey. >> sort of james bondish sort of cold war world. >> reporter: vie v. spy. >> exactly. >> reporter: sunday night, federal agents swooped in on this house and arrested a man and woman known as richard and cynthia murphy, accused of being part of a ring of 11 russian agents, ten living undercover in the northeast. if i told you sunday night before the raid "you've got russian agents living a few houses down..." >> i don't think we'd believe it. it's as if you said martians were live next door. >> reporter: two in montclair, one in new york city, two in yonker, new york, two in boston and three outside washington, d.c prosecutors say they used old-fashioned tricks like invisible ink and coded radio transmissions to funnel information to the russian intelligence service as well as some high-techen novations new since the cold war, like short-range wireless connections between laptops. but if they were trying to lay low, they were sloppy. anna chapman, a 28-year-old who ran a $2 million real estate business, spoke russian on youtube. and posted these attention-getting snapshots on facebook. prosecutors say the murphies argued with their russian bosses saying they wanted to put the home they were buying in their own names. so what really was going on in this classic suburban house where the murphies lived? well, they weren't justed with espionage, the stealing of state secrets. according to the complaint, it seems like they were sent here to embed in the u.s. culture, find out how it really works and what the movers and shakers really think. >> this is big to be perfectly honest. i can't think of a similar case in the west since the end of the cold war. >> reporter: but n.y.u. professor mark gal i can't tellty says it's a mistake to down play the charges. acting as an agent without informing the u.s. and money laundering just because they're not espionage. >> any intelligence asset, especially any serious intelligence asset, is a threat while it's operating in your country. >> reporter: in russia, prime minister vladimir putin dismissed the arrests during a photo-op with bill clinton. "police got out of control and grabbed some people" he said to him. the question tonight, will the rhetoric stop there or will russia/u.s. regulations take a step back toward the cold war as well? jim axelrod, cbs news, montclair, new jersey. >> hill: coming up on the "cbs evening news," doing away with giant raves-- doctors' orders. [ male announcer ] if you have type 2 diabetes, you struggle to control your blood sugar. you exercise and eat right, but your blood sugar may still be high, and you need extra help. ask your doctor about onglyza, a once daily medicine used with diet and exercise to control high blood sugar in adults with type 2 diabetes. adding onglyza to your current oral medicine may help reduce after meal blood sugar spikes and may help reduce high morning blood sugar. 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disney pixar's toy story 3 only in theaters. priority mail flat rate boxes only from the postal service. a simpler way to ship. >> hill: everyone loves a party, but e.r. doctors in los angeles say giant dance parties known as raves go too far. as ben tracy reports, one ended last weekend with more than a hundred young people in the hospital. >> reporter: it was billed as the largest dance party of its kind in north america. but when 185,000 people pileed into the l.a. coliseum this past weekend, many couldn't stay on their feet. 226 were injured. 114 take on the the hospital, including grace rodriguez's daughter sasha who ended up with brain damage after drinking from a friend's water bottle laced with the drug ecstasy. grace now has to decide whether to take her 15-year-old off of life support. >> i was supposed to be planning her sweet 16 party and now i have to plan her funeral. >> reporter: these megaparties called raves are all-night dance fests with electronic music, often fueled by drugs such as ecstasy and cocaine. >> obviously it's not advertised that this is a drug fest but i think it's well understood, certainly to those of us in the health profession, what's going on at these raves. and i would be very surprised if the county officials weren't aware of it as well. >> reporter: raves began in the late 1980s and were mostly held in abandoned warehouses. now many are large organized commercial events, often in public facilities. at a rave at another state-owned arena near san francisco last month, two young men died, likely from drug overdoses. governor schwarzenegger has ordered a review of event guidelines at all state facilities. nationally, several major cities have cut down on raves by enforcing curfew laws and fire codes. los angeles county emergency responders now prepare for raves as multicasualty incidents similar to planning for major emergencies such as commuter train crashes. the people who run the coliseum here in los angeles say they try to minimize drug use and injuries and that most people are just having a good time. but for far too many, that good time is ending far too badly. ben tracy, cbs news, los angeles. i'm darryl willis. i oversee bp's claims process on the gulf coast. bp has got to make things right and that's why we're here. we're replacing the lost income for fishermen, small businessmen and others who aren't able to work until the spill is cleaned up. we've agreed to create a $20 billion claims fund, administered independently. our claims line is open 24 hours a day. i volunteered for this assignment because this is my home. i'll be here in the gulf as long as it takes to make this right. >> hill: things got a little tougher today for supreme court nominee elena kagan. after listening on day one of her confirmation hearing, today she answered sharp questions from republican senators. jan crawford is our chief legal correspondent. jan, good evening. >> reporter: good evening, erica. you know, the first questions were also the toughest and they focus odden her efforts when she was dean at harvard law school to limit military recruiting on campus because of the pentagon's "don't ask, don't tell" policy. kagan tried to explain that today but republicans weren't buying it. >> the military at all times during my deanship had full and good access. military recruiting did not go down, indeed, in a couple of years-- including the year your particularly referring to-- it went up. >> i'm just a little taken aback by the tone of your remarks because it's unconnected to reality. i know what happened at harvard. i know you were an outspoken leader against the military policy. >> reporter: later sessions questioned her intellectual honesty during that part of her testimony and that wasn't the only issue republicans hammered her on. they also focused on gun rights coming off yesterday's supreme court decision that expanded gun rights nationwide. now, erica, kagan said she accepted that decision, she didn't say, though, that she would have voted for it. and that's the delicate dance these nominees try to do. so today she held her own, she was confident, showed flashes of it with, but didn't break a lot of new ground. erica? >> hill: we'll be watching as this continues, january, thanks. there have also been tough questions about soccer's world cup after a series of blown calls. today soccer's governing body, f.i.f.a., formally apologized to england and mexico. both were eliminated in games where the referees made obvious mistakes, like this missed goal. those referees as well as the one who robbed the u.s. team of a game-winning goal, have been pulled from the world cup and f.i.f.a. says it will consider giving referees some high-tech help. it's pain relief without the pills. no pills, no pain. how can you get pain relief without taking pills around the clock? try thermacare heatwraps, for all day relief without pills. i was surprised, thermacare worked all day. you feel the heat. and it relaxes and unlocks the muscle. you've got to try it. 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