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Obama administration announces new deepwater drilling moratorium

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By Cat Viglienzoni - July 13, 2010

Third time's a charm - at least, that's what the Obama administration hopes for its latest attempt at a deepwater drilling moratorium in the Gulf of Mexico. They unveiled a new drilling freeze to replace the one thrown out by a federal judge.

The new ban is not much different from the original one, but it defines deepwater drilling operators differently, which the administration hopes will be enough to allow it to pass judicial scrutiny. The two previous moratorium attempts have been struck down by judges, who said the government failed to show there would be "irreparable injury" if the moratorium was not enacted.

The new ban would also end by Nov. 30 or sooner. It would not affect existing offshore platforms, only new projects seeking permitting. Interior Secretary Ken Salazar also said it focuses on the type of drilling technology being used rather than the depth of the water.

"I remain open to modifying the new deepwater drilling suspensions based on new information," he said, "but industry must raise the bar on its practices and answer fundamental questions about deepwater safety, blowout prevention and containment, and oil spill response."

The new ban also extends beyond the Gulf to include the Pacific region. Previously, the moratorium had been restricted to deepwater operations in the Gulf of Mexico. The administration maintains the ban is necessary for safety and investigation. They say a pause will give operators time to demonstrate they can respond to a spill and assess their plans for response in the event of an accident. They say it would also allow for time to collect information about the April 20 explosion that triggered the worst environmental disaster in U.S. history.

However, industry members and pro-drilling lawmakers have criticized the moratorium, saying it contradicts expert testimony given in hearings and ignores the history of drilling in the region.  

"It is unnecessary and shortsighted to shut down a major part of the nation's energy lifeline while working to enhance offshore safety," said president and CEO of the American Petroleum Institute Jack Gerard. "The new moratorium threatens enormous harm to the nation and to the Gulf region."

However, environmental groups expressed support for the moratorium, calling it a necessary safety precaution.

(Photo courtesy: AP Images)