Tuesday, June 22, 2010

Is Louisiana Saved? Official Ruling Overturning Offshore Drilling Ban Full Text (Other Links To Come)

Note this is an preliminary injunction which I will take.

Thank GOD!! Here is the ruling. More links to come!!

Well this is true:

After reviewing the Secretary’s Report, the Moratorium Memorandum, and the Notice to Lessees, the Court is unable to divine or fathom a relationship between the findings and the
immense scope of the moratorium.
The Report, invoked by the Secretary, describes the offshore oil industry in the Gulf and offers many compelling recommendations to improve safety.

But it offers no time line for implementation, though many of the proposed changes are represented to be implemented immediately. The Report patently lacks any analysis of the asserted fear of threat of irreparable injury or safety hazards posed by the thirty-three
permitted rigs also reached by the moratorium.

It is incidents specific and driven: Deepwater Horizon and BP only. None others.

While the Report notes the increase in deepwater drilling over the past ten years and the increased safety risk associated with deepwater drilling, the parameters of “deepwater” remain confused.
And drilling elsewhere simply seems driven by political or social agendas on all sides.

OUCH look at this footnote:

If the MMS and the Department truly were incompetent
and corrupt, as the intervenors insist, the Court fails to see how
this conclusion supports the government’s position. Indeed, while
the government makes light of the fact that several of the experts
disagree with the recommendations in the Report by noting that they
do not disagree with the findings, of greater concern is the
misleading text in the Executive Summary that seems to assert that
all the experts agree with the Secretary’s recommendation. The
government’s hair-splitting explanation abuses reason, common
sense, and the text at issue
Double ouch- The question here does the Govt have to do this? I am not sure:
Word is that the government will appeal. Doing so would put the case in the U.S. Fifth Circuit, widely regarded as the most conservative and pro-business of the nation’s appellate courts. The chances of the Obama administration winning in the 5th, which like Feldman’s court is based in New Orleans, aren’t great.
Furthermore, as the Times-Picayune noted last night in quoting Loyola Law professor Blaine LeCesne, appealing is an expensive proposition.
But LeCesne noted that if the government wants to stay any preliminary injunction, it could be required to post a bond equivalent to the damage faced by the affected parties, such as Hornbeck. “It could be billions,” LeCesne said. “It could be cost-prohibitive to appeal.”



Henry Karlson said...

No, that does not save the state. Allowing for more destruction for a quick buck today is a rather short-sighted house of sand.

James H said...

More destruction. Losing the economy of Louisiana is massive destruction and could be the final nail

The problem is and I think the Judges Opinion points this out well the Govt did not seem to be bothered to make a case that such drastic action was necessary.

Further and I don't think this point is getting out but it was in the GOvernor Office Brief is that what is risk here is a lack of revenue that will have the effect of destroying the Coast since new laws are about to kick in to use this revenue Louisian gets for Coastal erosion projects

The fact is if there is no drilling there will be no Coast literally. We are in a race against the clock. I have watched this Coastal erosion problem for 20years and it is apparent the US Govt is not going to give us the 100 billion we need to correct the problem

Further the massive unemployment that this would cause would not only cause a strained budget to already collapse but could lead to a devastating migration. These companies cannot just sit on the leases and it that is a expensive proposition by the day.

So I am relieved for now

Henry Karlson said...

So you make $5 and kill everyone in 5 years for that $5. The problem is the economy should not be "restored" via destructive means. Let's not do an Easter Island.

James H said...

Henry first this is a preliminary injunction

You are jumping to the conclusion that the Govt has proven there is a danger and that danger requires this resposne. I think what has frustrated us down here is that D.C. seemed to have their mind made up on what they wanted to do and there was very listening to the folks on the ground that work in the industry day in and day out.

Basically the Govt just announced by Fiat it was doing this ignoring it owns procedures.

it did not help that they ignored their own expert panel either and tried to mislead on that.

The Govt can still make their case. But this time they will have to actually make their case.

I doubt they can. What the Obama administration I hope does is consider the very bi partisan reccomendations that are being put out by Landrieu and Jindal as to this problem.