Hornbeck: 'Pleased Court Has Ruled In Our Favor' On Moratorium

22nd Jun 2010 22:09

By Brian Baskin Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Hornbeck Offshore Services Inc. (HOS), which filed the lawsuit that led to the overturning of a temporary U.S. ban on offshore drilling Tuesday, is "ready to continue serving the needs of our customers" while the government appeals, the company said in a statement. U.S. District Judge Martin L.C. Feldman ruled that Hornbeck and other companies working in the Gulf of Mexico's offshore oil and gas fields would pay a steep economic price for "an invalid agency decision to suspend drilling of wells in depths of over 500 feet." The ruling overturned a six-month moratorium announced in late May by the Obama administration, five weeks after an explosion on a drilling rig triggered a leak from a BP PLC (BP, BP.LN) well that developed into one of the worst oil spills in U.S. history. In a statement, Hornbeck Chief Executive Todd Hornbeck said "we are very pleased that the court has ruled in our favor," and praised Judge Feldman for "having considered this case on an expedited basis." Hornbeck is a major operator of support vessels serving the oil and gas industry, and derives a large portion of its revenue from the Gulf of Mexico. The Obama administration said it will appeal to the Fifth Circuit Court of Appeals, and little work is expected to resume until higher courts have ruled. Still, Hornbeck described the ruling as "important for the tens of thousands of workers across the Gulf Coast states...who make their living serving the offshore oil industry." "While the federal government has announced its intent to appeal this decision, we at Hornbeck are ready to continue serving the needs of our customers in a safe and environmentally sound manner," Hornbeck said. -By Brian Baskin, Dow Jones Newswires; 212-416-2453; [email protected] (END) Dow Jones Newswires June 22, 2010 17:09 ET (21:09 GMT)