The Obama administration through the Interior Department imposed the deepwater drilling moratorium after the Deepwater Horizon rig exploded which has resulted in what is known as the BP Oil Spill.
Kendra Barkoff, the spokeswoman for the Interior Department said "We continue to believe that it is not appropriate to drill new deepwater wells in the Gulf until we can be assured that future drilling activity can be conducted in a safe and environmentally responsible manner."
There will likely be another hearing in front of the full appellate court in late August.
Louisiana Governor Bobby Jindal said in a statement that he was pleased with the Court’s findings however expressed his concern that there would be more delays.
Jindal said, “We have very serious concerns that the Department of Interior is going to announce a second moratorium. As members of the court pointed out today during the hearing, despite the injunction against the original moratorium, we currently have a de facto moratorium because of uncertainty from the Department of Interior".