Unanimous: Fifth Circuit Court Rejects Obama Drilling Moratorium

by Connie Hair

07/09/2010

A three-judge panel of the U.S. 5th Circuit Court of Appeals in a unanimous decision has rejected the Obama moratorium on drilling in the Gulf of Mexico, upholding U.S. District Judge Martin Feldman’s June 22 injunction.

At a hearing on Thursday, the Department of the Interior argued that the court should reinstate the drilling ban while they wait for the full court to hear the appeal.

From the Associated Press:

Justice Department lawyer Michael Gray argued Feldman abused his discretion when he overturned the moratorium, which halted the approval of any new permits for deepwater projects and suspended drilling on 33 exploratory wells.

Lawyers for several oilfield service companies that sued to block the moratorium, including Hornbeck Offshore Services, said the Obama administration has failed to show that the government would suffer "irreparable harm" if the drilling ban is lifted.

The court rejected the government’s argument.

Judge W. Eugene Davis said the first hearing on the merits of the appeal by the three-judge panel would take place late August or early September.

Louisiana Gov. Bobby Jindal was in the gallery for the hearing and spoke to press outside the courthouse. Jindal opposes a moratorium on drilling that would put tens of thousands of people out of work in Louisiana alone, devastating the coastal economy already reeling from the effects of the spill.

“The federal government not being able to do its job is not a reason for thousands of Louisianians to lose their jobs,â€