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In the United States Court of Appeals for the Fifth Circuit No. 10-30585 In the United States Court of Appeals for the Fifth Circuit HORNBECK OFFSHORE SERVICES, INC., Plaintiff-Appellee, v. KENNETH SALAZAR, in his official capacity as Secretary of the Interior, UNITED STATES DEPARTMENT OF THE INTERIOR, THE BUREAU OF OCEAN ENERGY MANAGEMENT, REGULATION, AND ENFORCEMENT, and MICHAEL R. BROMWICH, in his official capacity as Director of that Bureau, Defendants-Appellants. __________________________________________________________________ On Appeal from the United States District Court for the Eastern District of Louisiana, No. 10-CV-1663(F)(2) (Hon. Martin Feldman) __________________________________________________________________ AMICUS CURIAE BRIEF OF SEN. MARY LANDRIEU OF THE STATE OF LOUISIANA, CHAMBER OF COMMERCE OF THE UNITED STATES OF AMERICA, LOUISIANA OIL & GAS ASSOCIATION, GREATER HOUSTON PARTNERSHIP, IN SUPPORT OF PLAINTIFF-APPELLEE’S OPPOSITION TO DEFENDANTS-APPELLANTS’ MOTION FOR STAY R. Ted Cruz Brady Edwards Allyson N. Ho MORGAN, LEWIS & BOCKIUS LLP 1000 Louisiana Street, Suite 4000 Houston, Texas 77002 713.890.5000 Telephone 713.890.5001 Facsimile Attorneys for Amici Curiae (list of amici continues on inside cover) No. 10-30585 (list of amici, continued from front cover) Louisiana Association of Business & Industry, Mobile Area Chamber of Commerce, Greater Shreveport Chamber of Commerce, Ruston Lincoln (LA) Chamber of Commerce, Natchitoches Area (LA) Chamber of Commerce, Baton Rouge Area Chamber of Commerce, Southern Crop Production Association, New Orleans Chamber of Commerce, Mississippi Associated Builders & Contractors, Greater Lafayette Chamber of Commerce, Ascension Chamber of Commerce, Greater Iberia Chamber of Commerce, St. Tammany West Chamber of Commerce, East St. Tammany Chamber of Commerce, Plaquemines Association of Business and Industry, Thibodaux Chamber of Commerce, River Region Chamber of Commerce, Houma-Terrebonne Chamber of Commerce, Bayou La Batre Area Chamber of Commerce, Harvey Canal Industrial Association, Louisiana Association of Chambers of Commerce Executives, Southwest Louisiana Chamber of Commerce, Lafourche Chamber of Commerce, Greater New Orleans, Inc. (list of counsel, continued from front cover) Robin S. Conrad Amar D. Sarwal NATIONAL CHAMBER LITIGATION CENTER, INC. 1615 H Street, N.W. Washington, D.C. 20062 (202) 463-5337 Telephone 202 463 5346 Facsimilie Counsel for The Chamber of Commerce of the United States of America ii Clay Allen ALLEN & GOOCH 2000 Kaliste Saloom Rd, Suite 400 Lafayette LA 70508 Ph: 337.291.1000 Fax: 337.291.1200 Attorneys for The Louisiana Oil & Gas Association iii TABLE OF CONTENTS Page Statement Of Identity, Interest, And Authority .........................................................1 Introduction And Summary Of Argument.................................................................2 Argument....................................................................................................................5 A. The Public Interest Strongly Favors Denying The Stay And Maintaining The Injunction...................................................................5 1. Like a series of catastrophic aftershocks, the harm inflicted upon the drilling industry by the moratorium will necessarily ripple through its various satellite industries ..............................5 2. The ripple effect of the moratorium’s economic devastation will not stop with the oil and gas related-industries, but reverberate through all aspects of Gulf Coast life .......................................11 B. The Threatened Injury To Companies Along The Gulf Coast Is Irreparable And Heavily Outweighs Any Harm To The Government From Lifting The Moratorium.............................................................17 C. The Government Is Not Likely To Succeed In Defending The Moratorium On The Merits.................................................................18 Conclusion ...............................................................................................................20 iv TABLE OF AUTHORITIES Page CASES Bowen v. Am. Hosp. Ass'n, 476 U.S. 610 (1986).......................................................................................18 Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U.S. 402 (1971).......................................................................................17 Motor Vehicle Mfrs. Ass'n v. State Farm Mut. Auto Ins. Co., 463 U.S. 29 (1983).........................................................................................18 Ross-Simons of Warwick, Inc. v. Baccarat, Inc., 102 F.3d 12 (1st Cir. 1996)............................................................................16 Wentz v. Kerr-McGee Corp., 784 F.2d 699 (5th Cir. 1986) .........................................................................16 STATUTES 5 U.S.C. § 706(2) .....................................................................................................17 43 U.S.C. § 1344......................................................................................................18 MISCELLANEOUS David Hammer, Rig Support Crews Feel Left in the Lurch; $100 million fund ignores estimated 24,000 jobs, TIMES-PICAYUNE, June 18, 2010, (available at http://www.nola.com/news/t- p/frontpage/index.ssf?/base/news-14/1276842671148750.xml&coll=1). .. 9 Editorial, A Second Oil Disaster, WALL ST. J., June 9, 2010, (available at http://online.wsj.com/article/SB100014240527487033039045752930630570 23350.html?KEYWORDS=a+second+oil+disaster). ....................10, 11, 12 Jeff Moore, Industry on Edge, DAILY ADVERTISER, June 6, 2010, (available at http://www.theadvertiser.com/article/20100606/NEWS18/6060335/ Industry-on-edge). ..................................................................................... 11 v TABLE OF AUTHORITIES (continued) Page Jim Redden, Port Fourchon Thrives Despite the Economy, OFFSHORE MAG. (Mar. 1, 2009), (available at http://www.offshore- mag.com/index/article-display/357201/articles/offshore/supplements/ port-of-fourchon/articles/port-fourchon-thrives-despite-the-economy.html). 6 La. Mid-Continent Oil & Gas Ass’n, Impacts of President Obama’s Halting Work on 33 Exploratory Wells in the Deepwater Gulf of Mexico (May 28, 2010) (available at http://www.lmoga.com/Economic%20Impacts%20of%20Gulf%20 Moratorium.pdf). ........................................................................................... 5 Letter from Mary Landrieu, U.S. Senator (D-La), to William K. Reilly, Chairman, Nat’l Comm. on the BP Deepwater Horizon Oil Spill & Offshore Drilling (June 23, 2010) (available at http://landrieu.senate.gov/mediacenter/pressreleases/06-23-2010-2.cfm). 13 Letter from Mary Landrieu, U.S. Senator (D-La.), to Barack Obama, United States President (June 11, 2010) (available at http://landrieu.senate.gov/mediacenter/pressreleases/06-11-2010-1.cfm. 2, 14 Letter from various U.S. Congressmen to Ken Salazar, U.S. Secretary of the Interior (June 24, 2010) (available at http://www.house.gov/apps/list/press/tx08_brady/ltr_2010_06_24_to_ salazar.pdf). ................................................................................................... 14 MORGAN STANLEY, GLOBAL OIL SERVICES AND DRILLING EQUIPMENT: REVIEWING ESTIMATES AND TARGETS ASSUMING 18-MONTH GOM DRILLING MORATORIUM 4 (Ole Slorer, et al. eds., June 1, 2010). ............................... 9 Presentation, Potential Economic Impact of the Oil Spill, Greater New Orleans, Inc., Reg’l Econ. Alliance (June 21, 2010), (available at http://gnoinc.org/news-events/key-information-on-gulf-oil-spill) ......12, 13 vi TABLE OF AUTHORITIES (continued) Page Press Release, Cobalt Int’l Energy, Inc. Announces Force Majeure Notification on Drill Rig (June 1, 2010) (available at http://ir.cobaltintl.com/phoenix.zhtml?c=231838&p=irol- newsArticle_print&ID=1432761). .............................................................. 8 Press Release, La. Mid-Continent Oil & Gas Ass’n, Oil Industry Impact on LA Tops $70 Billion (Sept. 10, 2007) (available at www.lmoga.com/LMOGA%20economic$20study$2007.pdf) .................. 4 Press Release, Nat’l Ocean Indus. Ass’n, NOIA Member Companies Feel Impacts of Drilling Moratorium, Applauds Landrieu’s Efforts to Save Jobs (June 11, 2010), available at http://www.noia.org/website/article.asp?id=38566). .................................. 7 Tom Sawyer, et al., Economic Worries Grow With Oil Spill, ENG’G NEWS-REC. (June 14, 2010). ........................................................................ 7 Tom Zeller, Jr., Fear grips oil rig communities; Moratorium threatens jobs of those who depend on deepwater drilling, INT’L HERALD TRIB., June 19, 2010. ......................................................................................13, 14 Tom Zeller, Jr., No Oil is a Problem, Too, N.Y. TIMES, June 18, 2010, (available at http://www.nytimes.com/2010/06/18/business/18rig.html?scp= 2&sq=&st=nyt). ...............................................................................9, 11, 14 U.S. Senator Asks Obama to Lift Drilling Ban, INT’L OIL DAILY, June 14, 2010, (available at http://www.energyintel.com/DocumentDetail.asp?Try=Yes&document_ id=674126&publication_id=31)................................................................. 10 vii STATEMENT OF IDENTITY, INTEREST, AND AUTHORITY Amici curiae comprise a broad spectrum of individuals and organizations in the Gulf Coast region and across the Nation who share a deep concern about the serious effects of the federal government’s moratorium on the Nation’s economy, on the wide variety
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