Sable Offshore Corp mentioned Wednesday the Santa Barbara Superior Court docket had issued a tentative ruling indicating the courtroom would deny the corporate’s claims in opposition to the California Coastal Fee (CCC), in a allowing dispute over repairs on the Santa Ynez Unit (SYU) pipeline system.
Nonetheless, Houston, Texas-based Sable insisted even when the courtroom resolution turns into closing, “the ruling would don’t have any affect on the resumption of petroleum transportation by means of the Las Flores Pipeline System”.
“Moreover, oil and fuel manufacturing from the federal Santa Ynez Unit and the move of petroleum from the Santa Ynez Unit to the Las Flores Canyon processing amenities or to a possible offshore storage and treating vessel (OS&T) can be unaffected by rulings within the Coastal Fee litigation”, it mentioned in an announcement on its web site.
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SYU is Sable’s sole operation. SYU ceased flows 2015 after an oil spill that, in keeping with the CCC, launched 123,000 gallons of oil and induced environmental harm to 150 miles of shoreline. SYU was then owned by Plains Pipeline LP, which offered it to Exxon Mobil Corp 2022. Sable acquired SYU from ExxonMobil February 2024.
Nonetheless Sable plans to escalate such a closing judgment by the Superior Court docket to the California Court docket of Enchantment.
“Sable is suing the Coastal Fee for the damages it has induced Sable by erroneously issuing stop and desist orders throughout Sable’s anomaly restore program on the Las Flores Pipeline System”, the assertion mentioned.
“The anomaly restore program and hydrotesting of the Las Flores Pipeline System was [sic] accomplished in Could 2025 in accordance with the Federal Consent Decree.
“Sable intends to proceed its pursuit of the writ of mandate within the Court docket of Enchantment in addition to declaratory reduction and inverse condemnation claims in extra of roughly $347 million”.
Sable added it “continues to work diligently with the State of California to securely and responsibly resume petroleum transportation by means of the Las Flores Pipeline System in accordance with the Federal Consent Decree”.
Sable chair and chief government Jim Flores commented, “California has a possibility to authorize the resumption of petroleum transportation by means of the Las Flores Pipeline System per its obligations within the Federal Consent Decree and decrease gasoline costs for California residents”.
“California’s financial system will face dire penalties if refineries proceed to shut because of the lack of home manufacturing, which needs to be a significant concern for the bondholders of the State of California”, Flores added.
The CCC has but to answer to Rigzone’s remark request.
On September 29 Sable mentioned it had filed a request earlier than the California Workplace of the State Fireplace Marshal to restart the Las Flores Pipeline System, warning it could decide to divert oil flows outdoors the state if delays proceed.
Sable mentioned it had “glad all operational circumstances to renew petroleum transportation by means of the onshore pipeline”.
“Amongst these glad circumstances are anomaly repairs, security valve installations, management room enhancements and the manufacturing of all supporting documentation and analyses”, Sable mentioned.
“Continued delays associated to the onshore pipeline will immediate Sable to completely pivot again to a leased OS&T technique, which was utilized to course of SYU manufacturing in federal waters from 1981-1994”, it warned.
“The onshore pipeline gives instant financial reduction to California residents and can play a big function in stabilizing native refineries”, Sable mentioned.
“Within the second choice, the corporate would have the liberty to market its manufacturing outdoors of the state of California.
“Moreover, Sable would plan to aggressively pursue all authorized cures. Sable will proceed to pursue each paths in parallel.
“Within the OS&T choice, the corporate expects to execute an OS&T lease contract by year-end 2025 for supply in Q3 2026. Sable would then anticipate to start gross sales from all SYU platforms throughout This autumn 2026 with anticipated complete oil manufacturing charges of over 50,000 barrels of oil per day using the OS&T inside the SYU federal leases”.
On November 12, 2024, the CCC issued a Stop and Desist Order (CDO) in opposition to actions to reactivate the pipeline system, citing “unpermitted improvement”. The CCC argued Sable was conducting pipeline works with out having undergone the fee’s authorization course of.
On March 12, 2025, Sable introduced a swimsuit in opposition to the CCC earlier than the Superior Court docket in Santa Barbara County asking for “damages and declaratory and injunctive reduction to guard its vested rights to restore, keep and function the Santa Ynez Unit and Las Flores Pipeline Programs”. Sable mentioned it had obtained consent from the county authorities that helps the corporate’s view that restore works are coated by the pipeline system’s current permits and don’t want a brand new or separate Coastal Act authorization.
On April 10, 2025, the CCC issued a second CDO, ordered Sable to revive environmental damages from the allegedly unauthorized works and imposed administrative penalties. The CCC insisted the Consent Decree between Sable and the native authorities doesn’t represent a allow and doesn’t exempt Sable from state and native legal guidelines and permits.
To contact the creator, electronic mail jov.onsat@rigzone.com
