Federal regulator removes State Fire Marshal from supervision of Sable Offshore’s oil restart plans
WASHINGTON D.C. (KEYT) – On Wednesday, federal regulators agreed with Sable Offshore that local pipelines used to transport oil are subject to exclusively federal oversight and no longer under the jurisdiction of the California Office of State Fire Marshal.
"PHMSA [Pipeline and Hazardous Materials Safety Administration] agrees with your [Sable Offshore] determination that the Las Flores Pipeline is an interstate pipeline," stated a letter from the Department of Transportation Wednesday. "The PSA [Pipeline Safety Act] vests with PHMSA exclusive regulatory authority over interstate pipelines and preempts States from adopting or continuing in force safety standards for interstate pipelines."
In September, Sable Offshore submitted official paperwork to restart oil production with the California Office of State Fire Marshal (OSFM) and the state-based safety agency responded the next month that there were still unmet conditions before an official restart.
The image below, from an informational slide presented to investors by Sable Offshore, shows the assets that make up the Santa Ynez Unit in both federal and state waters as well as onshore facilities.
The energy company responded the following day in a letter that stated the OSFM's conclusions, "are in error" and the requirements mentioned by the OSFM regarding safety tools only had to be conducted within seven days of achieving initial steady state operation, but not before restart.
In November, Sable Offshore requested that federal regulators with the U.S. Department of Transportation take over supervision of the Houston-based company's attempts to restart oil production.
According to an 8-K filing with the U.S. Securities and Exchange Commission, Sable Offshore informed investors that it had determined that the pipeline connecting the Santa Ynez Unit to Pentland Station in Kern County is technically an interstate pipeline under the Pipeline Safety Act and therefore not subject to oversight by the state's Office of State Fire Marshal.
That designation was sent for confirmation with the U.S. Department of Transportation's Pipeline and Hazardous Safety Administration and included a request to transfer all regulatory authority from the California regulator to the federal agency.
According to Wednesday's letter, federal regulators conducted on-site inspections earlier this month alongside representatives from the State Fire Marshal and reviewed written procedures and field observations across the Santa Ynez Unit which extend oil pipelines to refineries across the state.
"As portions of the Las Flores Pipeline were previously considered to be intrastate and regulated by OSFM, PHMSA is notifying OSFM that the Las Flores Pipeline is subject to the regulatory oversight of PHMSA," concluded the Department of Transportation regarding the regulatory change.
While the State Fire Marshal's authority has officially been removed regarding Sable Offshore's restart plans, the company is still facing additional legal issues that remain outstanding including:
- Lease Violation: Public claims in May to have restarted oil production may have violated leases issued by the California State Lands Commission
- Civil Charges: The California Attorney General filed civil charges over alleged violations of state environmental laws while Sable and its subsidiaries were conducting pipeline work
- Permit Transfers: The Santa Barbara County Board of Supervisors voted Tuesday to deny the transfer of permits to Sable Offshore necessary to restart oil production
- Criminal Charges: The Santa Barbara County District Attorney filed criminal charges including five felony charges of knowingly discharging a pollutant into local waterways between at least October 2024 and April of 2025, 16 misdemeanor charges of obstructing a streambed, and improper actions concerning materials considered dangerous to local wildlife
Just three days after criminal charges were filed against the company, the Chairman and CEO of Sable Offshore filed a request for expedited permitting and installation of a Floating Production Storage and Offloading vessel with members of the federal National Energy Dominance Council.
The proposed offshore transportation and treating vessel location would be approximately one nautical mile away from Platform Harmony and could bypass much, if not all, of the legal oversight of California regulators regarding restart plans.
With the change in oversight authority announced Wednesday, efforts to pursue the offshore vessel tender alternative may no longer be necessary.
"Sable is committed to energy affordability and reliability and to recommencing oil sales in a safe and efficient manner," shared Steve Rusch, Vice President of Environmental and Governmental Affairs for the Sable Offshore when reached for comment earlier Wednesday. "Sable has met all requirements for the permit transfer as previously confirmed by Santa Barbara County staff and by the Planning Commission. Not only have we demonstrated all required operator capabilities and financial requirements, but we have gone above and beyond those requirements. Today’s [Tuesday's] decision does not impact Sable’s ability to continue operating the SYU facilities and pipeline system or its plans to re-commence oil sales. Sable will continue to defend our vested rights to pursue domestic energy supplies that are critically needed to make California more affordable and prevent our state’s energy infrastructure from collapse."
