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Judge to hear bid to overturn halt on drilling

4 years ago June 20, 2010 Jun 20, 2010 Sunday, June 20 2010 Sunday, June 20, 2010 2:06:15 PM EDT in News
Source: Associated Press

Several oil service companies are asking a federal judge to block the Interior Department from enforcing a six-month moratorium on new deepwater drilling projects in the Gulf of Mexico.

U.S. District Judge Martin Feldman is scheduled to hear arguments Monday on Hornbeck Offshore Services' bid for a
court-ordered lifting of the moratorium.

A lawsuit filed by the Covington-based company claims the government arbitrarily imposed the moratorium and suspended drilling at 33 existing exploratory wells without any proof that the operations posed a threat.

Hornbeck says the moratorium could cost Louisiana thousands of jobs and millions of dollars in lost wages. Government lawyers say the company is making "alarmist and speculative" allegations about the potential economic impact of the move.

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