Oil firm loses its appeal against ban on drilling

The Sala IV constitutional court has rejected an appeal against a petroleum drilling ban. The measure appears to be related to the efforts of Mallon Oil Co. Costa Rica S.A., to drill exploratory wells in the northern zone.

The Poder Judicial released just a short statement saying the court had rejected the appeal of unconstitutionality.

The appeal was against the three-year moratorium that President Laura Chinchilla decreed in August 2011.

Mallon, a Denver, Colorado, firm, has been fighting for more than 10 years to exercise a concession that he received to explore for petroleum. Now Costa Rica imports all its petroleum via the state-owned refinery company.

Ms. Chinchilla issued the decree, in part, because she wanted to fight climate change with lower hydrocarbon emissions. The decree also said there was an environmental danger to drilling.

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