Judge denies stay in moratorium ruling

Offshore drilling: Judge denies administration request for stay.

A US judge refused today to put on hold his decision blocking the federal government from enforcing its six-month ban on deep-water oil drilling after the Gulf of Mexico oil spill.

District Judge Martin Feldman in New Orleans rejected the Obama administration's request to stay his decision that allowed deep-water drilling to resume.

The Interior Department suspended drilling after the ruptured BP well began gushing oil into the Gulf more than two months ago.

Fifteen hours after the Justice Department appealed Feldman's ruling and requested a stay pending that appeal, Feldman issued a brief order denying the request for the same reasons he gave in his Tuesday decision, according to a Reuters report.

In that opinion, Feldman strongly criticised the Obama administration's moratorium, saying that it was "indeed punitive" because it was too broad, arbitrary and was not adequately justified given the impact on thousands of oil industry workers and on local communities.

The Obama administration can still ask the US Court of Appeals for the Fifth Circuit - also based in New Orleans - for a stay as it seeks the appeal there.

Administration officials have defended the six-month moratorium as necessary to provide time to investigate the cause of the BP oil well spill and to ensure that other wells being drilled below 500 feet of water are safe.

The initial deep-water drilling ban suspended work on 33 rigs.

The Justice Department had no comment.

The challenge to the moratorium was mounted by Hornbeck Offshore Services and was quickly joined by other drilling and oil services players.

Some companies said they were considering drilling outside US waters because of the ban.

In addition to seeking the appeal, Interior Secretary Ken Salazar said yesterday that he would issue a revised moratorium order and would include criteria for ending the ban, an apparent bid to satisfy the court.

However, the companies accused the administration of trying to flout the judge's order, pointing to Salazar's remarks, and asked the judge to issue an order enforcing his injunction that blocked the moratorium.

Feldman denied the request for such an enforcement order, saying it was "premature."


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