company in its attempt be paid for Florida lands where drilling for oil and gas is banned.

Florida's First District Court of Appeal upheld yesterday a ruling against the company last year by a lower court. Coastal Caribbean, an oil, natural gas and minerals producer based in Bermuda, filed the suit seven years ago.

The company's Apalachicola, Florida-based Coastal Petroleum Co. unit is seeking compensation from the state because it said its royalty interests on 2.5 million acres of tidal lands were made worthless when Florida enacted a drilling ban there in 1990.

The company said it now expects to appeal the decision to the Florida Supreme Court.

The company purchased interests in the lands along the Gulf coast in the 1940s.

COURT CTS