A federal appeals court has rejected a US Government request to reinstate a ban on deepwater drilling.

The court rejected a submission by US Government Interior Secretary Ken Salzaar that appealed against the 22 June 2010 ruling to reject the offshore drilling ban imposed on 27 May following the explosion and sinking of the Deepwater Horizon oil rig in April.

In response to the ruling, the US federal court appealed and asked the court to delay enforcement of the court order while it challenges the ruling.

The government appeal cited precedents from drilling bans imposed following earlier offshore incidents.

The state of Louisiana told the court that the drilling industry contributes $3bn annually to its economy.

The International Association of Drilling Contractors president Lee Hunt said the government would introduce a new, more tightly targeted moratorium following the rejection of its appeal.