Sable Offshore is digging in for a legal fight with California regulators after the California Coastal Commission threatened new enforcement action against the company’s offshore oil operations in the Santa Barbara Channel.
The Houston-based energy company issued a defiant response this week, insisting it is operating legally and signaling that it has no intention of backing down despite mounting pressure from state officials.
“Sable Offshore Corp. (“Sable”) through its subsidiary, Pacific Pipeline Company (“PPC”), continues to lawfully operate through its existing coastal development permits which were issued in 1986,” the company told the California Post in a statement.
The California Coastal Commission has threatened to shut down Sable Offshore’s crude oil extraction operations. Andy Johnstone for CA PostThe response comes after the California Coastal Commission warned Sable that it could pursue cease-and-desist orders and additional penalties, arguing that the company restarted portions of its pipeline system without obtaining a new state permit.
The commission’s Executive Director, Kate Huckelbridge, previously told the company that regulators believe violations are ongoing and warned that unilateral enforcement action could be taken if a settlement cannot be reached.
But Sable argues the state is attempting to impose permitting requirements that are not legally required under federal law.
“Sable has addressed the Coastal Commission’s actions in an existing federal court lawsuit filed by PPC against the State of California challenging California’s ability to impose an additional Coastal Commission permitting requirement on the Santa Ynez Pipeline System,” the company added.
The lawsuit, filed in federal court by Pacific Pipeline Company, challenges California’s authority to require additional Coastal Commission approvals for the pipeline network that serves offshore oil operations along the Santa Barbara coastline.
Coastal Commission Executive Director Kate Huckelbridge. California Coastal CommissionSable indicated it will continue working with federal authorities as the legal battle unfolds.
“Sable will continue to work with the federal government, acting through the Department of Justice, to enforce federal law for federally regulated critically needed energy assets,” the company said.
Earlier this year, the Trump administration supported efforts to restart the pipeline system, arguing that domestic energy production and critical infrastructure should not be blocked by additional state regulatory hurdles.
California Governor Gavin Newsom is fighting to stop operations and remove part of Sable’s pipeline. David Buchan for Ca PostThe dispute has become the latest chapter in a broader battle between California officials and the energy company over efforts to restart oil production in the region following years of regulatory and legal fights.
Environmental groups and state officials have accused Sable of violating California law and have pushed aggressively to halt operations.
The Coastal Commission previously imposed an $18 million penalty against the company, while Santa Barbara County prosecutors have pursued criminal charges related to alleged permitting violations.
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