U.S. Chamber Urges Fifth Circuit to Uphold
Halt to Offshore Drilling Moratorium Economic
Losses from the Moratorium Would be
‘Staggering,’ Donohue Says

WASHINGTON, D.C.—The National Chamber
Litigation Center (NCLC) today filed a brief
on behalf of the U.S. Chamber of Commerce,
which was joined by 29 other Gulf Coast
chambers of commerce and industry groups and
U.S. Senator Mary Landrieu (D-LA), urging the
U.S. Court of Appeals for the Fifth Circuit
to uphold a federal judge’s decision to
halt the six-month moratorium on offshore
exploration in the Gulf of Mexico.  The case
is Hornbeck Offshore Services, Inc. v.
Salazar, et al.
 
“The economic losses inflicted by the
moratorium are nothing short of
staggering,” said Thomas J. Donohue,
president and CEO of the U.S. Chamber.
“Every day the moratorium remains in
effect, the drilling rigs sit idle—which
will force companies to redeploy their
assets, sending jobs and revenue to foreign
waters.  And every day the moratorium remains
in effect, American workers lose millions of
dollars in wages.”
 
Although the repercussions of the moratorium
are national in scope, nowhere are the
hardships more apparent than in the Gulf
Coast region, where the U.S. Chamber has been
on the ground assessing the economic impact.
As the U.S. Chamber’s Institute for 21st
Century Energy has pointed out, the
moratorium has halted both deep and shallow
water exploration in the Gulf, which could
lead to thousands of lost jobs and billions
of lost government revenue in the coming
months. 
 
“Operations in the Gulf of Mexico support
more than 150,000 jobs and account for more
than 30 percent of U.S. domestic oil
production,” said Donohue. “For that
reason, the moratorium is not just a threat
to the Gulf region’s economy, it’s a
threat to our nation’s economy, energy
security, and competitiveness.  Oil that is
produced in the Gulf is oil that America does
not have to import from foreign countries,
which will increase our energy security
risk.”
 
On June 23, a federal judge lifted the
administration’s moratorium on offshore
exploration, explaining that the “the
administration acted arbitrarily and
capriciously in issuing the moratorium.”
The administration appealed the judge’s
decision to the U.S. Court of Appeals for the
Fifth Circuit. The Chamber’s amicus brief
defends the judge’s decision to halt the
moratorium, arguing that the administration
failed to adhere to the rule of law and
abandoned evidence-based rulemaking.
 
“Businesses small and large depend upon the
government adhering to the rule of law,”
said Donohue. “According to Judge Feldman,
the agencies have failed to articulate any
good reason for suspending all drilling in
the Gulf of Mexico.”
 
Joining the Chamber on the amicus brief are
U.S. Senator Mary Landrieu, the Ascension
Chamber of Commerce, Baton Rouge Area
Chamber, Bayou La Batre Area Chamber of
Commerce, Business Council of Alabama,
Greater Houston Partnership, Greater Iberia
Chamber of Commerce, Greater Lafayette
Chamber of Commerce, Greater New Orleans
Inc., Greater Shreveport Chamber of Commerce,
Harvey Canal Industrial Association,
Houma-Terrebonne Chamber of Commerce,
Lafourche Chamber of Commerce, Louisiana
Association of Business & Industry, Louisiana
Association of Chambers of Commerce
Executives, Louisiana Oil & Gas Association,
Mississippi Associated Builders &
Contractors, Mobile Area Chamber of Commerce,
Natchitoches Area (LA) Chamber of Commerce,
New Orleans Chamber of Commerce, Plaquemines
Association of Business and Industry, River
Region Chamber of Commerce, Ruston Lincoln
(LA) Chamber of Commerce, Southern Crop
Production Assn., St. Charles Parish, St.
Tammany West Chamber of Commerce, East St.
Tammany Chamber of Commerce, Southwest
Louisiana Chamber of Commerce, and the
Thibodaux Chamber of Commerce.

The amicus brief is available at:
http://www.uschamber.com/assets/nclc/100702_offshoremoratorium_amicus.pdf

NCLC is the public policy law firm of the
U.S. Chamber of Commerce that advocates fair
treatment of business in the courts and
before regulatory agencies.
 
The mission of the U.S. Chamber’s Institute
for 21st Century Energy is to unify
policymakers, regulators, business leaders,
and the American public behind a common sense
energy strategy to help keep America secure,
prosperous, and clean. Through policy
development, education, and advocacy, the
Institute is building support for meaningful
action at the local, state, national, and
international levels.

The U.S. Chamber of Commerce is the world’s
largest business federation representing the
interests of more than 3 million businesses
of all sizes, sectors, and regions, as well
as state and local chambers and industry
associations.

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