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Interior Department says it will comply with Judge Feldman's latest permitting ruling

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But Secretary Salazar says department is still mulling an appeal

WASHINGTON -- Top Interior Department officials said Wednesday that they will comply with a New Orleans federal judge's ruling that ordered it to decide on five deepwater drilling permit applications within 30 days.

Ken Salazar testifies.jpgInterior Secretary Ken Salazar speaks before the National Commission on the BP Deepwater Horizon Spill and Offshore Drilling meeting last year. Wednesday Salazar testified before a Senate panel.

"We will comply with the court order and make the decision, up or down, on the pending permits," Deputy Interior Secretary David Hayes said.

Still, Interior Secretary Ken Salazar said that the department is mulling an appeal and that there are still obstacles to the faster permit pace advocated by the oil industry and Gulf State lawmakers.

Referring to New Orleans Federal Judge's Martin Feldman's Feb. 17 ruling, Salazar said that, in his view, the judge "was wrong."

"I don't think the court has the jurisdiction to basically tell the Department of Interior (what) its responsibilities are," Salazar said at Wednesday's hearing by the Senate Energy and Natural Resources Committee.

Asked to elaborate during a break in the hearing, Salazar said the department is examining its legal options on a possible appeal but "we also will comply with the judge's order if that is what we have to do."

Salazar said the permit issued this week to Noble Energy, allowing it to resume deepwater drilling in the Gulf of Mexico, will serve as a "template" for others permits "in the days ahead."

But Salazar continued to defend the slow pace of permitting since last April's BP's Macondo well blowout.

Sen. Mary Landrieu, D-La, suggested the department give the industry a more positive feedback about permitting possibilities now that the industry has developed oil containment systems for future spills. Since many wells will rely on the same containment systems, it seems reasonable to assume that if the plans work for one it would for a comparable well, as well, Landrieu said.

Landrieu was alluding to plans advanced by Helix Energy Solutions Group Inc., and Marine Well Containment Co.

But Salazar said that while progress is being made, the containment plans still "are works in progress," and need "significant amount of work."

He expressed doubt that the department will return to the permitting pace before the BP disaster.


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