Defense Dept. takes action over Halliburton

WASHINGTON -- The Defense Department is removing the Army Corps of Engineers from overseeing oil imports into Iraq, acting just weeks after Pentagon auditors said Halliburton -- Vice President Dick Cheney's former firm -- may have overcharged taxpayers under the Corps' supervision. The Defense Energy Support Center, which buys fuel for the military throughout the world, will supervise the replacement of Halliburton and the award of a new contract for the imports, the center said Tuesday.

Calif. escapes mudslides as storm misses region

SAN BERNARDINO, Calif. -- Californians escaped another bout of flooding Tuesday after a rainstorm bearing down on the region veered out to sea and missed the mountains where mudslides killed 15 people on Christmas Day. The approaching storm renewed fears that floods would wash tons of mud, boulders and trees through areas of the San Bernardino Mountains where autumn wildfires wiped out soil-retaining plants. Up to 3 inches of rain had been forecast for the mountains, but the showers missed the flood-ravaged areas, said a National Weather Service specialist. The rest of the week is forecast to be dry except for a chance of showers Friday.

-- From wire reports