Federal appeals court postpones hearing on drilling ban

A federal appeals court last week postponed its Sept. 1 hearing on an overturned six-month moratorium on deepwater drilling, saying it can’t rule without more information about a new temporary drilling ban imposed by the Obama administration.

A three-judge panel from the 5th U.S. Circuit Court of Appeals ordered the judge who overturned the Obama administration’s May 28 moratorium to hold a hearing to identify the differences, if any, between it and a second moratorium issued on July 12.

The 5th Circuit also asked U.S. District Judge Martin Feldman to explore whether Interior Secretary Ken Salazar has the authority to withdraw the May 28 moratorium while the court challenge was still pending.

One of the three 5th Circuit judges on the panel wrote a dissenting opinion, arguing that the court already had every record and document necessary to decide the case.

“Therefore, a futile remand of this case to the district court and cancellation of the oral argument will do injustice to all of the parties by delaying rather than expediting our decision of the mootness motion and this appeal on the merits,” 5th Circuit Judge James Dennis wrote.

The Interior Department issued the July 12 moratorium after Feldman overturned the initial moratorium on June 22.

The government asked the 5th Circuit to review Feldman’s ruling, but the appeals court said it couldn’t rule on that appeal without more information about the new moratorium.

Lawyers for several offshore service companies claim the second moratorium is identical to the first and was designed to circumvent Feldman’s order. Government lawyers said the new moratorium is based on new information about the dangers of deepwater drilling.

On Aug. 11, the Justice Department asked Feldman to throw out the case, claiming it was rendered moot by the new drilling ban. Feldman didn’t immediately rule on that request, saying he hasn’t passed judgment on the new moratorium yet.

The first moratorium halted the approval of any new permits for deepwater projects and suspended drilling on 33 exploratory wells. In his June 22 order, Feldman dismissed the initial ban as rash and heavy-handed.