Sable Offshore Corp, a prominent oil company in California, is embroiled in a legal skirmish with Santa Barbara County, seeking over $100 million in damages. The corporation accuses county officials of improperly withholding permits crucial for resuming its oil production activities in the state.
The company’s statement highlights its intent to pursue substantial financial compensation, claiming the county unlawfully blocked the transfer of key permits from a previous operator, Exxon, to Sable. This dispute has deep roots, tracing back several years, as Sable alleges it has been left in a state of uncertainty, waiting for permits that it asserts should have been transferred by Santa Barbara officials.
Adding another layer to Sable’s legal challenges, the company is also engaged in separate litigation against the California Coastal Commission. This particular case relates to restarting operations at one of its facilities last year, with Sable seeking damages amounting to at least $347 million. The company claims that the commission obstructed its efforts to resume oil production at the Las Flores pipeline.
In recent developments, Judge Donna Geck of the Santa Barbara Superior Court has ruled against Sable, issuing an injunction that prevents the company from resuming oil pumping operations at its Santa Ynez offshore pipeline. This decision marks a victory for Governor Gavin Newsom, aligning with his administration’s stance on environmental and regulatory issues.
Despite the court’s injunction, Sable’s legal representative, Jeffrey Dintzer, communicated to The Post that the pipeline remains operational. He emphasized that crude oil is still being transported through the Santa Ynez system, as authorized by U.S. Energy Secretary Wright, acting under presidential authority.
Despite the injunction, Sable attorney Jeffrey Dintzer told The Post that the pipeline “is still operational, and we are continuing to pump crude through the Santa Ynez system pursuant to the order of [US Energy] Secretary Wright who is authorized by the president.”
In March, President Trump initiated the Defense Production Act to allow for the restarting of pumping off the Santa Barbara coast.
The pipeline was shuttered in 2015 after a spill resulted in thousands of barrels of crude leaking into the Pacific Ocean.
Oppponents furiously claimed that the order was “illegal” and that any restart needed approval by state regulators. They then sought the temporary injunction, granted in February.
Jim Flores, Sable’s chairman and CEO, said the company is “working tirelessly to provide American oil from American soil to consumers in California and the U.S. military and are proud to have produced over 1 million barrels from the Santa Ynez Unit to date.”
“We look forward to achieving our financial objectives as we continue to operate in a safe and reliable manner to the benefit of all of our stakeholders,” he added.
The Houston-based company said it was also coordinating with the federal government in “various legal matters to defend its vested rights to operate its assets and ensure compliance with certain federal mandates, including the Defense Production Act.”
“Sable is also actively pursuing damages and taking proactive legal action to curb state and county regulatory overreach,” the company said in a statement.
Despite the legal battles, oil has been flowing through the Santa Ynez pipeline and into California refineries.
The 40 wells currently online are producing an average of 750 gross barrels of oil per day per well, according to the company.
Once all 74 production wells on its two platforms are online, Sable expects the average production per well to be approximately 700 gross barrels of oil a day.
The company said once a third platform comes online next month and becomes fully operational, it is estimated to produce approximately 10,000 gross barrels of oil per day.
The California Coastal Commission declined to comment, while Santa Barbara County did not immediately return a request for comment.
