US Chamber, Landrieu ask appeals court to uphold moratorium ruling

July 2, 2010
The US Chamber of Commerce, joined by US Sen. Mary L. Landrieu (D-La.), the Louisiana Oil & Gas Association, and 28 other Gulf Coast chambers of commerce and business associations, urged a federal appeals court in New Orleans to uphold a federal court’s decision to halt the Obama administration’s 6-month deepwater drilling moratorium.

Nick Snow
OGJ Washington Editor

WASHINGTON, DC, July 2 -- The US Chamber of Commerce, joined by US Sen. Mary L. Landrieu (D-La.), the Louisiana Oil & Gas Association, and 28 other Gulf Coast chambers of commerce and business associations, urged a federal appeals court in New Orleans to uphold a federal court’s decision to halt the Obama administration’s 6-month deepwater drilling moratorium.

“The economic losses inflicted by the moratorium are nothing short of staggering,” US Chamber Pres. Thomas J. Donohue said as he announced the filing on July 2. “Every day the moratorium remains in effect, the drilling rigs sit idle, which will force companies to redeploy their assets, sending jobs and revenue to foreign waters. And every day the moratorium remains in effect, American workers lose millions of dollars in wages.”

In a separate statement, Landrieu said she joined the filing after repeatedly warning that the moratorium will have minimal impact on the largest oil and gas companies, while crippling and possibly putting out of business small and independent operators and oil service companies. The brief highlights the ripple effect a prolonged moratorium will have on nearly every part of Louisiana’s economy, she indicated.

US District Judge Martin Feldman issued a preliminary injunction against the moratorium on June 22 in a civil case filed by Hornbeck Offshore Services Co. of Covington, La., and 30 other offshore service companies against Salazar. He made his ruling a day after hearing arguments on the case in New Orleans.

US Interior Sec. Ken Salazar immediately announced that work would begin on imposing a new moratorium which the Obama administration considers necessary while the Apr. 20 Macondo well blowout and oil spill into the Gulf of Mexico are investigated.

“Operations in the Gulf of Mexico support more than 150,000 jobs and account for more than 30% of US domestic oil production,” said Donohue. “For that reason, the moratorium is not just a threat to the gulf region’s economy; it’s a threat to our nation’s economy, energy security, and competitiveness. Oil that is produced in the gulf is oil that America does not have to import from foreign countries, which will increase our energy security risk.”

Contact Nick Snow at [email protected].