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Court: Drilling rule doesn't apply to Gulf

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Published: July 31, 2009

WASHINGTON - A federal appeals court ruling won't stand in the way of new oil and gas drilling in the Gulf of Mexico.

The U.S. Court of Appeals in Washington clarified late Tuesday that its decision this year to block some Bush-era drilling plans was meant to apply only to activity in Alaska, not the Gulf.

Uncertainty over the decision had raised questions about whether the Interior Department should move forward with a lease sale scheduled for Aug. 19 in 18 million acres in the western Gulf near Texas. The Obama administration announced recently that it planned to hold the Gulf sale but acknowledged it might have to reverse course.

The department's Minerals Management Service estimates the area could yield 423 million barrels of oil and 2.64 trillion cubic feet of natural gas.

The Associated Press

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