“...the standing orders were to save American lives.”
How do we know this?
Did the standing order include the authority to take assets across the border into Libya?
This is what a retired Lt. Col. said on Rush Limbaugh's show last Friday. The Lt. Col. was highly informed of protocol in this region of the world. Rush asked what the directive is in the event that the POTUS or SecDef cannot be reached. The Lt. Col. said that the standing orders are to protect American lives. Rush then asked the clarifying question: if a rescue mission didn't take place, then someone had to give the order to stand down. The Lt. Col. said "yes" and clarified that that authority rests with the CinC or SecDef.
But you raise a good point. The details of the standing orders were not presented. Crossing into a foreign country would seemingly be above what a regional General is authorized to do; this would also seemingly be above the authority of the SecDef. This would come from the POTUS only, but only with the consulation of the SoS.
Logically, Obama would have to give the authority for a rescue mission. But the authority to stand down and not offer assistance could come from Panetta.
Which is how the statement is parsed. Obama and the White House didn't refuse a request for assistance. Just as the statement says. However, Obama didn't authorize a rescue mission. Which is what is missing from the statement.