N.O. Fed Judge to hear arguments on deepwater shutdown Monday

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Court hearing on proposed drilling moratorium injunction Monday

Published: Thursday, June 17, 2010, 1:25 PM Updated: Thursday, June 17, 2010, 2:29 PM

Rebecca Mowbray, The Times-Picayune
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A key hearing in a lawsuit seeking to lift the deepwater drilling moratorium will go forward Monday morning in federal court in New Orleans on an expedited basis, despite an effort by the federal government for a delay until the end of July, two months into the six-month shutdown.
Rusty Costanza / The Times-PicayuneCapt. Richard Garner stands on the deck of the Carol Chouest, a 280-foot-long, state-of-the-art supply vessel tied up in early June at Port Fourchon with two identical sister vessels, the Hannah Chouest, center, and the C-Fighter. The Chouest companies have joined a suit challenging the deepwater drilling moratorium.
In a handwritten note, U.S. District Court Judge Martin Feldman on Monday crossed through the proposed order from the U.S. government and wrote, "Denied. The issues presented are of national significance and to delay resolution would be irresponsible."




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Monday's hearing is to decide whether a preliminary injunction against the moratorium is warranted. The hearing is set for 9:30 a.m.
Meanwhile, the lawsuit filed by Hornbeck Offshore LLC on June 7 has gained steam as some of the largest marine service and shipbuilding companies in Louisiana have signed on as plaintiffs.
Bollinger Shipyards Inc., which is based in Lockport and has 2,500 employees across different companies along the Gulf Coast and 5,000 active vendors around the country, joined the suit.
So did the shore-side services, vessel and shipyard companies affiliated with the Chouest companies in Galliano, which have 8,000 employees.
A Lafayette Parish company called Bee-Mar, which has 75 employees and owns and operates ships that support deepwater drilling, also signed on.
Hornbeck has 1,300 employees and 2,000 current vendors.
The companies argue that the May 28 moratorium announced by Interior Secretary Ken Salazar will irreparably harm their businesses, and that the measure is arbitrary, capricious and an abuse of discretion.
They argue that the U.S. Minerals Management Service, a division of the Department of Interior, inspected rigs in May after the April 20 Deepwater Horizon rig explosion and found no violations on 27 rigs and only minor violations on two others. They further argue that MMS has offered no explanation for why all drilling operations in more than 500 feet of water are dangerous. They also argue that drilling is effectively shut down in shallow water and that in practical terms, the moratorium will last for more than six months because rigs will be forced to relocate elsewhere, and owners are canceling contracts with vessel companies in the Gulf.
The companies also point out that the Outer Continental Shelf Lands Act requires that any suspensions be made on an individual basis.
The U.S. Department of Justice, representing the Interior Department, said the plaintiffs provided "nothing more than bare conclusory allegations that their financial interests will somehow be irreparably harmed, " by the "brief" six-month moratorium. The Justice Department argued that more time is needed to sufficiently consider the broad environmental issues, safety policies and other complex questions contemplated by the moratorium in the face of an unprecedented disaster.
Each side will limited to one hour of argument Monday. No other groups have intervened in the suit.
Rebecca Mowbray can be reached at rmowbray@timespicayune.com or 504.826.3417.


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