Thursday, June 10, 2010

Hornbeck Offshore Services (NYSE:HOS) Sues Interior Department over Moratorium

A media report says Hornbeck Offshore Services (NYSE:HOS) the Interior Department over Obama's decision to put a moratorium on oil drilling in the Gulf of Mexico.

The lawsuit is an attempt to stop the Interior Department from enforcing the six-month moratorium, which some also fear could end up being extended to a year or longer.

Hornbeck says in the lawsuit that of the 33 drilling rigs inspected by the government, 29 of them only had minor violations.

The supplier of vessels to offshore oil and gas exploration companies said the moratorium also conflicts with Federal law which requires the government "to balance orderly resource development with the protection of human, marine and coastal environments."

There is growing opposition to the moratorium, which is deemed excessive by many, including workers and lawmakers from the regions affected most by it.

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