The government appealed the decision and sought to reinstate its moratorium pending the appeal.

In a 2-1 decision, though, the appeals court judges state that the government "failed to demonstrate a likelihood of irreparable injury" if the moratorium is not reinstated.

The decision further states that Mr. Salazar "has made no showing that there is any likelihood that drilling activities will be resumed pending appeal."

The judges said the government has the right to apply for emergency relief if it can show that drilling activity by deepwater rigs "has commenced or is about to commence," and that any renewed motion for stay "will be evaluated on existing circumstances."

Furthermore, the judges ordered that the government's appeal of the District Court decision be expedited so that arguments can begin on August 30.

In a statement sent via email, Department of Interior spokesperson Julie Rodriguez said, "As the court recognized, the secretary can seek a stay on an emergency basis in the event that an operator seeks to resume deepwater drilling activity in the Gulf. 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."

She also said Mr. Salazar will look to issue a new moratorium in the wake of the decision.

Ms. Rodriguez said, "Based on what we have learned since the [British Petroleum] oil spill, it has become increasingly clear that companies may not have adequate containment and response capabilities to respond to a spill, and therefore, as the secretary has said previously, he will be issuing a new moratorium."