A three-judge panel has denied the federal government's request to reinstate a six-month deepwater drilling moratorium pending the government's appeal of a lower court decision that lifted the moratorium last month.

But the latest decision from the U.S. Court of Appeals for the Fifth Circuit in New Orleans notes that the government can apply for "emergency relief" if there is evidence that deepwater drilling activity is about to commence before the appeal is heard.

The government issued the moratorium in response to the Deepwater Horizon rig explosion and subsequent and ongoing oil spill in the Gulf of Mexico.

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