By Phaedra Friend Troy
Late Thursday, the 5th US Circuit Court of Appeals rejected the US government’s request to restore the deepwater drilling moratorium.
Although it was expected to take up to a week to decide, the federal court in New Orleans quickly returned the result in a 2-to-1 decision.
The decision states that Interior Secretary Ken Salazar “failed to demonstrate a likelihood of irreparable injury if the stay is not granted,” adding that he was unable to show that there was a likelihood of drilling to recommence pending the appeal.
The ruling also included that the Interior Department could apply for an “emergency relief” if drilling did recommence.
The deepwater drilling moratorium was enacted in reaction to the April 20 Macondo blow-out, Deepwater Horizon accident and subsequent oil spill in the Gulf of Mexico.
The moratorium was first rejected by a lower court on June 22, and the Obama administration appealed that decision, claiming the six-month moratorium is necessary to determine the cause of the Deepwater Horizon accident and implement stricter drilling regulations.
While this upholds the right of oil and gas producers to drill in the deepwaters of the Gulf of Mexico, most likely drilling will continue to be curtailed due to the uncertainty of the situation. The US government may impose a second drilling moratorium, and the expense of revving back up to only be shut-down again is too great.
Thirty-three drilling rigs have been idled since the deepwater moratorium was enacted. With a multi-year wait for most deepwater drilling rigs, it is expected that these rigs will relocate to the deepwaters of West Africa and Brazil.
Beyond the oil washing up on their shores, Gulf Coast communities say they will be further devastated because of the loss of income resulting from the jobs lost during the moratorium – and possibly afterward if the rigs do relocate.
