More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Emma Ruby-Sachs

Emma Ruby-Sachs

Posted: June 23, 2010 11:25 AM

Court's Decision to Overturn the Drilling Moratorium Was Just Plain Wrong

What's Your Reaction:
2010-06-23-3898808431_94ab357ced.jpg


Yesterday, a Federal judge in Louisiana suspended the only sensible action taken by the Federal government since BP's spill occurred. Justice Feldman of the U.S. District Court ordered that the Obama administration's moratorium on deepwater drilling be removed pending a further investigation into the safety of the existing and future drilling operations. He effectively overturned the drilling moratorium.

There are a number of problems with his ruling. And, many sources indicate that the Judge has significant stock in oil and thus served to suffer significant personal loss if the moratorium was upheld. These allegations have not been confirmed, but if the intellectual missteps in Feldman's decision are any indication of his bias, this adjudicator was seriously influenced by something other than the rule of law.

The Federal government is allowed to temporarily prohibit any activity that causes a "threat of serious, irreparable, or immediate harm or damage to life (including fish and other aquatic life), to property, to any mineral deposits... or to the marine, coastal, or human environment." (OCSLA s. 1334(a)(1)). A decision to suspend activity under this act can only be set aside if the decision is "arbitrary, capricious, an abuse of discretion, or not otherwise in accordance with law." (5 U.S.C. s.706(2)(a)).

The Supreme Court has found that a decision is "arbitrary and capricious" if it relied on factors not contemplated by Congress, ignored an important part of the problem at hand, ignored evidence to the contrary or came up with a decision that is so implausible it could not be attributed to a difference of opinion within the agency (State Farm, 463 U.S. 43).

Feldman looked at this law and made two important and faulty decisions.

First, he determined that you cannot suspend all deepwater operations without first taking into account the particular safety practices and regulations followed by each suspended rig. This is a problematic conclusion. When the Federal government has determined that the agency in charge of oversight might be incompetent or corrupt, assessing the safety of each individual operation becomes impossible. When the Federal government has determined that the safety standards in place and understood by experts in the field are woefully inadequate, assessing the safety of future drilling operations becomes impossible. Feldman actually acknowledged these two points, but insisted on finding that the government must still, despite these roadblocks, engage in an individual assessment.

Even if you wanted individual assessments, the decision not to conduct this kind of review before issuing a moratorium is not arbitrary and capricious. The establishment of the moratorium can easily be ascribed to a difference in opinion between experts within the Federal agency.

Second, Feldman granted the oil companies a preliminary injunction (in other words, he found that, until further review, the status quo stands and the moratorium cannot be enforced). Preliminary injunctions can only be granted if there is a substantial risk of irreparable harm (Ridgely v. FEMA, 512 F.3d 727). Irreparable harm only exists when the damage cannot be quantified monetarily after the fact and the parties cannot be reimbursed after the fact. It is most certainly not the kind of harm that results when a company stands to lose money because of suspension of corporate practices. If, and it is unlikely, Feldman was right in his analysis, the oil companies would be free to sue after the fact and recover the damage done to their respective businesses. The oil isn't going anywhere. They could drill in six months, sue for the interim losses and be put back in the same position as present day. The use of a preliminary injunction in this case creates unnecessary risk in an environment that is already fragile.

The Federal government has stated that it will appeal the ruling. For all our sakes, I hope the appeal is swift. Most important, I hope the appeal is in front of a judge without ties to the oil industry (a rare find it turns out) who understands how to interpret the law accurately and fairly.

 

Follow Emma Ruby-Sachs on Twitter: www.twitter.com/EmmaRubySachs

 
 
  • Comments
  • 170
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
Page: 1 2 3 4  Next ›  Last »  (4 total)
photo
HUFFPOST SUPER USER
babaann
If I had known I would live this long.........
08:50 AM on 06/24/2010
The Gulf of Mexico is a "crime scene".
07:19 AM on 06/24/2010
Does the Federal Government retain regulatory power in this situation or not? If it does, then the court is not the place for executive action.

If right now is not an appropriate moment to pause long enough to determine if it is safe to be deep drilling, or, indeed, if it even can be made safe with current technology, the when would there ever be such a time? If there is no such time, then hand all our resources over to the robber barons and shut the regulatory agencies down, because they serve no useful purpose (Republicans would LOVE this).

On the other hand, hey, the Gulf is destroyed for a generation anyway. Maybe we should let 'em drill? How much worse can they make it?

Back to the first hand...if you live on the coast of North Carolina, say, and some fat oil company of dubious reputation is poised to drill off coast there, would you think it might be appropriate to sort out what we are doing, and whether it makes sense, BEFORE we leap?
02:41 AM on 06/24/2010
The thought of proceeding with deep water drilling in the Gulf after oil fouled our beautiful beaches here in Pensacola today is absolutely unthinkable. At his very moment we have oil gushing out of the Deepwater Horizon accident site with no immediate end in site. And people want to keep drilling with no new regulations, no thorough inspections, and no plan whatsoever on how to contain the oil and respond to another similar incident? Insanity. No deepwater drilling until ALL issues are addressed, significant funds set aside, and somebody can explain how another catastrophe of this magnitude can be avoided or at least mitigated.
More video on my blog here about oil hitting the beach, my take on the moratorium, and photo/video of President Obama's visit to Pensacola Beach last week:
http://BloggingDemocratic.blogspot.com
01:19 AM on 06/24/2010
Subsea Oil Silo can contain this gusher! Check this out.

http://www.youtube.com/watch?v=UP8iN4ZX1JU&feature=channel

This should recieve the highest priority by the Feds if they are sincere in their efforts to contain this disaster.
12:14 AM on 06/24/2010
Ok, so Toyota has some problems with their vehicles. The accelerators get stuck and people can find themselves driving at very high unstoppable speeds to their unfortunate deaths. Shouldn't we also stop everybody from driving cars until our all knowing, all important, well informed presidential blue ribbon commission get's this figured out?

The same applies to passenger jets and oil rigs and if I hit my finger with a hammer.
02:38 AM on 06/24/2010
Nobody cares if you hit your finger (or your head) with a hammer - a lot of people are impacted when something goes wrong with an oil rig.
photo
jsehgal
Awake without coffee
04:38 AM on 06/24/2010
Toyota should have been shut down and all Toyota vehicles recalled.My friend's wife owned such a car that accelerated and is an invalid now. All of us friends vowed not to buy Toyota again.
Thanks for your corporate concern, you troll!
PS Go hit your another finger or play in traffic.
11:09 PM on 06/23/2010
Here in Colorado a large percentage of the active oil wells are not pumping. They are laying idle. Why????????
11:04 PM on 06/23/2010
Hmmmm.

A crack in a wing spar can ground an entire fleet of aircraft while they are all inspected. But a disaster on an oil rig that destroys the ecosystem of LA, MS, AL and FL does not pose enough risk to force inspection of similar rigs?

What strange thinking?

Will Rogers had it correct when he said, "... We have the best politicians that money can buy!"
HUFFPOST SUPER USER
Msquad99
Space is a vacuum because earth sucks.
10:57 PM on 06/23/2010
More for CB750. BP is who they are because they bought American Oil Company, AMOCO, lock, stock and barrel. Otherwise they would not have had the assets or the money and clout to do what they do. The U.S. and Mexico control ALL leases for the region of the Gulf in which BP was drilling, thus the U.S. and Mexico either got money for BP to drill there or are in on the returns. Ship were not and still are not brought in to help with clean up for two reasons. Either BP won't let them or they are full, sitting off shore waiting for the summer price spike before coming to port and emptying their holds at which point they would be then outfitted with recovery machinery. As I stated, take your head out of your behind. You haven't the slightest idea what you are talking about.
photo
HUFFPOST SUPER USER
chaz
10:01 PM on 06/23/2010
This reminds me of a former friend of mine who escaped from Hungary during the 1956 revolution. He use to constantly complain that nothing changes in Hungary because even though the Russians left they left behind numerous communist through the Hungarian government. Funny how history repeats it's self.

By the way he currently gets all of his news from Fox and Far right wing radio. Some things never change.
photo
DenverBigDaddy
Conservative does not equal Tea Party....
09:02 PM on 06/23/2010
And this would be opposed to the leading money getter from BP in the last election B. Hussein Obama? Gotcha.
08:52 PM on 06/23/2010
Wrong?

It was criminal.
photo
jsehgal
Awake without coffee
04:41 AM on 06/24/2010
Right on!
Faved!
The judge should be charged with criminal negligence.
photo
HUFFPOST SUPER USER
EbonBear
opinionated hairy man
08:31 PM on 06/23/2010
The judge clearly should have recused himself on grounds of conflict of interest.
07:37 PM on 06/23/2010
Great and so how does the gov stop any foreigners from deep gulf drilling? All that will happen is those rigs will be moved to other locations. The 6 months will become 6 years.

BTW it is disgusting that greens will NOT take the environmental hit for oil. You greenies pass this onto other countries. If you're so hot on rules and regulations then shouldn't the drilling be happening in OUR back yard so WE control it AND we take the hit for screw ups.

So instead pass the hit onto those brown people in Brazil or the dark people in Africa? That is so upstanding.

Also what logic is there to banning everyone from drilling cause one person screwed up. So do we take away all cars cause someone wrecked a car?

There are a lot of us in this country ready to stand against you nanny staters. You are going to get as much resistance as we can dish out and then double that. Its your nanny staters that block clean up efforts, Jones act, ban ships from helping, not enforce the rules you already made for BP, push BP out into deep water.
08:53 PM on 06/23/2010
solar wind and waste bio fuels can completely replace fossil and nukes in 12 years.

wake up.
01:21 AM on 06/24/2010
Legalize hemp and most of our energy problems would be solved. The seeds are 40% oil... makes a great organic biofuel. The plant can be used for paper, pulp, fiber, plastic, cloth, food, and the roots are nitrogen fixing... they will improve the topsoil for all crops! It is criminal that this plant isn't legal to farm in the USA.
photo
jsehgal
Awake without coffee
04:42 AM on 06/24/2010
Faved again!
Fanned, too!
HUFFPOST SUPER USER
Msquad99
Space is a vacuum because earth sucks.
10:36 PM on 06/23/2010
First, quit with the "you greenies" rap. You don't know who you are talking to and what you are talking about. There are over 3000 active oil and natural gas platforms at work in the Gulf. They are in deep water, shallow water, WHERE EVER THERE IS OIL OR GAS. Period. Big oil does what it wants to do when it wants to do it. To think or say otherwise is pure delusion. Yes, a MORATORIUM was and is necessary. The oil is not going anywhere, it will be there in 6 months or 6 years if it takes that long to make certain that ALL platforms conform to safety and security standards that THEY set themselves, with the help of CHENEY and his committee, who wrote the standards behind closed doors in the first place. You
07:16 PM on 06/23/2010
"I hope the appeal is in front of a judge without ties to the oil industry (a rare find it turns out) who understands how to interpret the law accurately and fairly."

I tend to think that the latter part of that statement is an even more rare find among judges. And it seems that the irreversible damage of another oilspill on top of the one that is going on right now is likely to cause even more irreperable damage. Mabye the government should seek a TRO.
06:15 PM on 06/23/2010
A typical right wing judge - start with the ruling and work backwards to the reasoning.

No doubt this guy is headed to the supreme court in the next GOP administration.
sampson2
Gardener
09:08 AM on 06/24/2010
An conservative activist judge. Who would have believed it possible!