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Court rejects US bid to keep drilling moratorium

July 08, 2010

by Michael Kunzelman
The Associated Press

NEW ORLEANS -- A federal appeals court has rejected the U.S. government's effort to keep a six-month deepwater drilling moratorium in place.

A three-judge panel of the 5th U.S. Circuit Court of Appeals ruled soon after a Thursday afternoon hearing in a lawsuit filed by companies that oppose the drilling ban.

The Interior Department said the moratorium was necessary while it studied deepwater drilling risks in the wake of the BP oil spill.

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The moratorium was previously struck down by a lower court on June 22.

The appeals court ruling found that the Interior Department failed to show the federal government would suffer "irreparable injury" if the ban isn't restored while it appeals the lower court's decision.

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