Hornbeck Offshore Services LLC v. Salazar
Encyclopedia
Hornbeck Offshore Services v. Salazar is an on-going case in United States federal court
. In the wake of the Deepwater Horizon explosion
and the subsequent oil spill
, the U.S. Department of the Interior
issued a six month moratorium on exploratory drilling in deep water
. Plaintiffs filed suit challenging the moratorium.
issued a moratorium
on all deepwater drilling
in the wake of the Deepwater Horizon oil spill
, pending a six month review by a White House
appointed panel.
On May 27, the DOI
issued a press release which indicated:
In response to the order, Hornbeck Offshore Services
filed suit in U.S. District Court seeking an injunction
to bar the enforcement of the moratorium. The lawsuit has been joined by several companies involved in offshore drilling, and Louisiana governor Bobby Jindal
's office signaled its support for the action by filing an amicus
brief by the state's attorney general.
Beginning June 8, 2010, Judge Martin Feldman
of the U.S. District Court in the Eastern District of Louisiana began ruling on motions in the case. Prior to June 22, Judge Feldman issued several orders to expedite the case (i.e. moving a hearing date from July 28 to June 21 and denying the government's request for a continuance). On June 22, 2010, Feldman granted a preliminary injunction lifting the moratorium.
, U.S. Secretary of the Interior has indicated that the U.S. Department of the Interior
will also "issue a new order in the coming days that eliminates any doubt that a moratorium is needed, appropriate, and within our authorities."
The White House appealed to the 5th Circuit Court of Appeals, which granted the request for an expedited hearing. On July 8, 2010, a three judge panel, W. Eugene Davis
, Jerry E. Smith
and James L. Dennis
, denied the government's emergency request to stay the lower court's decision pending appeal. The Obama administration is preparing a revised moratorium. The three-judge panel will hear arguments on the merits of the case the week of August 30.
Despite the ruling of the three-judge panel, a de facto moratorium arguably remains in place because the government has told oil companies that they must seek revised permits and the approval of a government agency to continue deepwater drilling. One of the requirements is that a CEO of a company seeking to drill must personally sign a statement certifying that all safety equipment works properly and all well designs are safe, and acknowledge personal criminal liability for any false statements.
Meanwhile, a coalition of environmental groups has moved for Judge Feldman to be disqualified. A hearing with Judge Feldman on that motion is scheduled for July 28.
Feldman had no direct holdings in any of the named plaintiffs, but his 2008 financial disclosure report http://www.judicialwatch.org/jfd/Feldman_Martin_L_C/2008.pdf indicates that in that year, he owned stock in Transocean
, the company that owned the Deepwater Horizon
rig, as well as in other oil companies which could be affected by the moratorium. Feldman's 2009 financial disclosure report http://thinkprogress.org/wp-content/uploads/2010/06/feldman.pdf indicates that he had financial investments in BlackRock
, the largest holder of BP
stock. Additionally, Feldman held stock in Exxon-Mobil, a company that operates one of the 33 deepwater rigs.
United States federal courts
The United States federal courts make up the judiciary branch of federal government of the United States organized under the United States Constitution and laws of the federal government.-Categories:...
. In the wake of the Deepwater Horizon explosion
Deepwater Horizon explosion
The Deepwater Horizon drilling rig explosion refers to the April 20, 2010 explosion and subsequent fire on the Deepwater Horizon semi-submersible Mobile Offshore Drilling Unit , which was owned and operated by Transocean and drilling for BP in the Macondo Prospect oil field about southeast of the...
and the subsequent oil spill
Deepwater Horizon oil spill
The Deepwater Horizon oil spill is an oil spill in the Gulf of Mexico which flowed unabated for three months in 2010, and continues to leak fresh oil. It is the largest accidental marine oil spill in the history of the petroleum industry...
, the U.S. Department of the Interior
United States Department of the Interior
The United States Department of the Interior is the United States federal executive department of the U.S. government responsible for the management and conservation of most federal land and natural resources, and the administration of programs relating to Native Americans, Alaska Natives, Native...
issued a six month moratorium on exploratory drilling in deep water
2010 U.S. Deepwater Drilling Moratorium
On May 30, 2010 a 6 month moratorium on all deepwater offshore drilling on the Outer Continental Shelf was declared by U.S. Secretary of the Interior Ken Salazar...
. Plaintiffs filed suit challenging the moratorium.
Background
In May 2010 the U.S. Department of the InteriorUnited States Department of the Interior
The United States Department of the Interior is the United States federal executive department of the U.S. government responsible for the management and conservation of most federal land and natural resources, and the administration of programs relating to Native Americans, Alaska Natives, Native...
issued a moratorium
2010 U.S. Deepwater Drilling Moratorium
On May 30, 2010 a 6 month moratorium on all deepwater offshore drilling on the Outer Continental Shelf was declared by U.S. Secretary of the Interior Ken Salazar...
on all deepwater drilling
Offshore drilling
Offshore drilling refers to a mechanical process where a wellbore is drilled through the seabed. It is typically carried out in order to explore for and subsequently produce hydrocarbons which lie in rock formations beneath the seabed...
in the wake of the Deepwater Horizon oil spill
Deepwater Horizon oil spill
The Deepwater Horizon oil spill is an oil spill in the Gulf of Mexico which flowed unabated for three months in 2010, and continues to leak fresh oil. It is the largest accidental marine oil spill in the history of the petroleum industry...
, pending a six month review by a White House
White House
The White House is the official residence and principal workplace of the president of the United States. Located at 1600 Pennsylvania Avenue NW in Washington, D.C., the house was designed by Irish-born James Hoban, and built between 1792 and 1800 of white-painted Aquia sandstone in the Neoclassical...
appointed panel.
On May 27, the DOI
United States Department of the Interior
The United States Department of the Interior is the United States federal executive department of the U.S. government responsible for the management and conservation of most federal land and natural resources, and the administration of programs relating to Native Americans, Alaska Natives, Native...
issued a press release which indicated:
Secretary Salazar is ordering a moratorium on drilling of new deepwater wells until the Presidential Commission investigating the BP oil spill has completed its six-month review. In addition, permitted wells currently being drilled in the deepwater (not counting the emergency relief wells being drilled) in the Gulf of Mexico will be required to halt drilling at the first safe stopping point, and then take steps to secure the well.
In response to the order, Hornbeck Offshore Services
Hornbeck Offshore Services
Hornbeck Offshore Services, Inc through its subsidiaries, operates offshore supply vessels , multi-purpose support vessels , and a to provide logistics support and specialty services to the offshore oil and gas exploration and production industry, primarily in the United States, Gulf of Mexico,...
filed suit in U.S. District Court seeking an injunction
Injunction
An injunction is an equitable remedy in the form of a court order that requires a party to do or refrain from doing certain acts. A party that fails to comply with an injunction faces criminal or civil penalties and may have to pay damages or accept sanctions...
to bar the enforcement of the moratorium. The lawsuit has been joined by several companies involved in offshore drilling, and Louisiana governor Bobby Jindal
Bobby Jindal
Piyush "Bobby" Jindal is the 55th and current Governor of Louisiana and formerly a member of the United States House of Representatives. He is a member of the Republican Party....
's office signaled its support for the action by filing an amicus
Amicus curiae
An amicus curiae is someone, not a party to a case, who volunteers to offer information to assist a court in deciding a matter before it...
brief by the state's attorney general.
Beginning June 8, 2010, Judge Martin Feldman
Martin Leach-Cross Feldman
Martin Leach-Cross Feldman is a United States federal judge on the United States District Court for the Eastern District of Louisiana. He was nominated by President Ronald Reagan on September 9, 1983, to a seat vacated by Jack M. Gordon. He was confirmed by the United States Senate on October 4,...
of the U.S. District Court in the Eastern District of Louisiana began ruling on motions in the case. Prior to June 22, Judge Feldman issued several orders to expedite the case (i.e. moving a hearing date from July 28 to June 21 and denying the government's request for a continuance). On June 22, 2010, Feldman granted a preliminary injunction lifting the moratorium.
Appeal
Ken SalazarKen Salazar
Kenneth Lee "Ken" Salazar is the current United States Secretary of the Interior, in the administration of President Barack Obama. A member of the Democratic Party, he previously served as a United States Senator from Colorado from 2005 to 2009. He and Mel Martinez were the first Hispanic U.S...
, U.S. Secretary of the Interior has indicated that the U.S. Department of the Interior
United States Department of the Interior
The United States Department of the Interior is the United States federal executive department of the U.S. government responsible for the management and conservation of most federal land and natural resources, and the administration of programs relating to Native Americans, Alaska Natives, Native...
will also "issue a new order in the coming days that eliminates any doubt that a moratorium is needed, appropriate, and within our authorities."
The White House appealed to the 5th Circuit Court of Appeals, which granted the request for an expedited hearing. On July 8, 2010, a three judge panel, W. Eugene Davis
W. Eugene Davis
W. Eugene Davis is a judge of the United States Court of Appeals for the Fifth Circuit. His chambers are in Lafayette, Louisiana.Born in Winfield, Alabama, Davis attended the University of Alabama and Samford University. After three years at Samford, he received a scholarship to Tulane University...
, Jerry E. Smith
Jerry Edwin Smith
Jerry Edwin Smith is a judge on the United States Court of Appeals for the Fifth Circuit. He was nominated by President Ronald Reagan on June 2, 1987 and confirmed by the Senate on December 19, 1987. Smith received his commission for the seat, which was created by 98 Stat...
and James L. Dennis
James L. Dennis
James L. Dennis is a United States federal judge currently serving on the United States Court of Appeals for the Fifth Circuit. His chambers are in New Orleans, Louisiana....
, denied the government's emergency request to stay the lower court's decision pending appeal. The Obama administration is preparing a revised moratorium. The three-judge panel will hear arguments on the merits of the case the week of August 30.
Despite the ruling of the three-judge panel, a de facto moratorium arguably remains in place because the government has told oil companies that they must seek revised permits and the approval of a government agency to continue deepwater drilling. One of the requirements is that a CEO of a company seeking to drill must personally sign a statement certifying that all safety equipment works properly and all well designs are safe, and acknowledge personal criminal liability for any false statements.
Meanwhile, a coalition of environmental groups has moved for Judge Feldman to be disqualified. A hearing with Judge Feldman on that motion is scheduled for July 28.
Controversy
Some questions have been raised as to if Judge Feldman had a bias that would call for recusal, as he holds several petroleum securities. The Code of Conduct for United States Judges require that a judge recuse himself if he has “an interest that could be substantially affected by the outcome of the proceeding.” Additionally, the code specifies that a judge must avoid even "the appearance of impropriety".Feldman had no direct holdings in any of the named plaintiffs, but his 2008 financial disclosure report http://www.judicialwatch.org/jfd/Feldman_Martin_L_C/2008.pdf indicates that in that year, he owned stock in Transocean
Transocean
Transocean Ltd. is one of the world's largest offshore drilling contractors. The company rents floating mobile drill rigs, along with the equipment and personnel for operations, to oil and gas companies at an average daily rate of US$282,700...
, the company that owned the Deepwater Horizon
Deepwater Horizon
Deepwater Horizon was an ultra-deepwater, dynamically positioned, semi-submersible offshore oil drilling rig owned by Transocean. Built in 2001 in South Korea by Hyundai Heavy Industries, the rig was commissioned by R&B Falcon, which later became part of Transocean, registered in Majuro, Marshall...
rig, as well as in other oil companies which could be affected by the moratorium. Feldman's 2009 financial disclosure report http://thinkprogress.org/wp-content/uploads/2010/06/feldman.pdf indicates that he had financial investments in BlackRock
BlackRock
BlackRock, Inc. is an American multinational investment management corporation and the world's largest asset manager. BlackRock is headquartered in Manhattan, New York City, New York, United States and is the leading provider of investment, advisory, and risk management solutions...
, the largest holder of BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
stock. Additionally, Feldman held stock in Exxon-Mobil, a company that operates one of the 33 deepwater rigs.
Timeline
- April 20 - Deepwater Horizon explosion
- May 27 - Moratorium issued
- June 7- Initial complaint filed in District Court http://docs.justia.com/cases/federal/district-courts/louisiana/laedce/2:2010cv01663/141146/1/
- June 8 - Feldman issues first order in Hornbeck case http://docs.justia.com/cases/federal/district-courts/louisiana/laedce/2:2010cv01663/141146/4/
- June 9 - Plaintiffs request injunction to lift moratorium, hearing date set for July 28 http://docs.justia.com/cases/federal/district-courts/louisiana/laedce/2:2010cv01663/141146/7/
- June 11 - Feldman issues order granting Plaintiff's Motion to Expedite and moves hearing date to June 21 http://docs.justia.com/cases/federal/district-courts/louisiana/laedce/2:2010cv01663/141146/10/, order granting Plaintiff's Motion to "Adopt Grounds for Preliminary Injunction" http://docs.justia.com/cases/federal/district-courts/louisiana/laedce/2:2010cv01663/141146/12/
- June 14 - Feldman issues order denying US request for continuance until July 28 http://docs.justia.com/cases/federal/district-courts/louisiana/laedce/2:2010cv01663/141146/23/
- Note that the printed text has been crossed out and is not the issued order. The order is handwritten and reads in part: "Denied. The issues presented are of national significance and to delay resolution would be irresponsible. "
- June 21 - Hearing held. Feldman issues multiple orders. http://docs.justia.com/cases/federal/district-courts/louisiana/laedce/2:2010cv01663/141146/57/http://docs.justia.com/cases/federal/district-courts/louisiana/laedce/2:2010cv01663/141146/59/http://docs.justia.com/cases/federal/district-courts/louisiana/laedce/2:2010cv01663/141146/60/http://docs.justia.com/cases/federal/district-courts/louisiana/laedce/2:2010cv01663/141146/61/http://docs.justia.com/cases/federal/district-courts/louisiana/laedce/2:2010cv01663/141146/62/http://docs.justia.com/cases/federal/district-courts/louisiana/laedce/2:2010cv01663/141146/63/http://docs.justia.com/cases/federal/district-courts/louisiana/laedce/2:2010cv01663/141146/64/http://docs.justia.com/cases/federal/district-courts/louisiana/laedce/2:2010cv01663/141146/65/
- June 22 - "Opening of Stock Market" - reported sale of Exxon stock according to Feldman Letter
- June 22 - Feldman issues decision lifting moratorium. http://www.laed.uscourts.gov/GENERAL/Notices/10-1663_doc67.pdf
- June 23 - Feldman letter to US Courts' Committee on Financial Disclosure C:http://thinkprogress.org/wp-content/uploads/2010/06/feldman.pdf
-
- "This is to advise that the Exxon stock noted [... in] my 2009 Financial Disclosure was sold at the opening of the stock market on June 22, 2010 prior to the opening of a Court hearing on the Oil Spill Moratorium case."
- June 24 - Feldman denies Salazar, et al. a temporary stay pending appeal to the 5th Circuit, grants request for disclosure of his 2009 Financial Disclosure form http://www.laed.uscourts.gov/GENERAL/Notices/10-1663_doc82.pdf
- June 25 - U.S. requests a stay from the 5th Circuit http://www.businessweek.com/news/2010-06-25/u-s-asks-appeals-court-to-delay-order-on-drilling.htmlhttp://www.scotusblog.com/wp-content/uploads/2010/06/moratorium-stay-motion-5th-CA-6-25-10.pdf
- June 25 - Feldman issues public statement disclosing the earlier sale of Exxon stock on June 22.
- "This is to advise that the Exxon stock noted [... in] my 2009 Financial Disclosure was sold at the opening of the stock market on June 22, 2010 prior to the opening of a Court hearing on the Oil Spill Moratorium case."