Blanket moratorium heads to Court of Appeals

The battle to impose a six-month moratorium on deepwater drilling in the Gulf is far from over; as Interior Secretary Ken Salazar arms the defense with a counter attack in the U.S. Court of Appeals tomorrow.

“The plaintiffs assert that they have suffered and will continue to suffer irreparable harm as a result of the moratorium. The court agrees,” wrote District Court Judge Martin Feldman on June 22, when he originally shot down the Obama administration’s moratorium order.

As it turns out, Feldman’s injunction wouldn’t be enough – Salazar’s “second” moratorium, or motion for stay, will face the gavel this week. But Hornbeck Offshore Services, the company that originally took the Interior to court, will continue to dig its heels in.

In an argument filed Friday by U.S. Sen. Mary Landrieu, the U.S. Chamber of Commerce and “a broad spectrum of individuals and organizations in the Gulf Coast region and across the nation” said the government’s rationale for the moratorium is “deliberately opaque.”

“But the consequences are painfully obvious,” it said. “On the heels of a global financial meltdown that has already left millions of Americans jobless, the economic losses that will be inflicted by the moratorium are nothing short of staggering.”

Independent Petroleum Association of America (IPAA) also filed an argument stating that Secretary Salazar did not demonstrate how one well’s failure constitutes failure for all drilling practices and regulations, which include more than 2,200 successful deepwater wells.

“Every day the moratorium remains in effect, the drilling rigs sit idle – forcing companies to choose between cancelling contracts or moving to foreign waters (and taking jobs with them),” continued Landrieu’s argument. “Every day the moratorium remains in effect, millions of dollars in wages are lost. And every day the moratorium remains in effect, a way of life comes closer to disappearing.”

If the stay is granted, rigs will most likely leave the Gulf, according to IPAA’s argument.

If the stay is denied, however, “the Secretary retains complete regulatory control over offshore drilling operations. He continues to review drilling permit applications as they are received for compliance with all lawful requirements, new and preexisting, for safety and environmental protection,” according to IPPA.

“If he finds a particular application wanting, or the risk at the given location unacceptable, he makes his record so that a court may review it in the usual course. But it is likely that many permits will be approved, drilling will proceed, rigs will remain in the Gulf of Mexico, and thousands of families will continue to have steady income.”

The oral arguments for both the appellants and appellees will be heard at 3 p.m., and a digital recording of the arguments will be posted online at the 5th Cirucuit Court of Appeal’s website one hour after the arguments conclude.