Federal regulator approves Sable Offshore’s plans to restart oil production in Santa Barbara County
SANTA BARBARA COUNTY, Calif. (KEYT) – This week, the U.S. Department of Transportation approved Sable Offshore's plan to restart oil production off the Gaviota Coast.
The approval comes after the federal agency removed the California Office of State Fire Marshal from the restart process entirely earlier this month.
According to an 8-K filing with the U.S. Securities and Exchange Commission, the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration informed the Houston-based energy company that it had approved its restart plans for Line CA-324 and Line CA-325 on Dec. 22.
Line CA-324, formerly known as Line 901, has remained dormant since it ruptured, causing the 2015 Refugio Oil Spill which impacted 150 miles of California coastline and destroyed thousands of acres of shoreline habitats.
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.
Earlier this month, 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 requested that federal regulators take over its restart plans involving the pipelines.
"Ever since a catastrophic oil spill at Refugio Beach in 2015 led to a court-ordered consent decree, CAL FIRE - Office of the State Fire Marshal has been responsible for overseeing the repair of the lines that caused the spill, which are now operated by Sable Offshore Corp in Santa Barbara County," shared Daniel Villaseñor with the California Natural Resources Agency. "The Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) is asserting these lines are within their jurisdiction and will assume regulatory authority of the lines going forward, and that the Office of the State Fire Marshal no longer has any role to play in keeping Californians safe from potential problems with these pipelines. The Administration is reviewing PHMSA’s new action and evaluating next steps."
The day before the decision to transfer regulatory authority, the County of Santa Barbara's Board of Supervisors officially voted to not transfer permits associated with Sable's restart plans.
The permit transfer is a notable step to restart oil extraction from 114 wells on three offshore platforms, transportation through associated pipelines, and a refinement facility at Las Flores Canyon that are collectively called the Santa Ynez Unit.
The permit transfer decision isn't the only roadblock Sable Offshore has faced as part of its restart plans at the Santa Ynez Unit:
- Lease Violation: Public claims in May to have restarted oil production already 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
- 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
"There is just too much evidence in the record that shows a pattern of noncompliance and either ignorance of our rules or just blatant disregard," explained Supervisor Lavagnino on his vote to deny the energy company permits after approving of the transfers earlier this year.
The former owner of the Santa Ynez Unit and current permit holder, ExxonMobil, dropped its lawsuit against Santa Barbara County's denial of the company's plan to use trucks to transport oil from offshore platforms instead of the dormant pipelines in February of 2024 after it sold the oil production infrastructure to Sable Offshore.
According to court documents, Sable secured a $622,000,000 loan from Exxon to fund the purchase of the Santa Ynez Unit which is set to expire and ownership revert back to the oil giant unless oil from the Santa Ynez Unit enters the market.
With the latest federal approval, it appears as thought the Santa Ynez Unit is poised to officially restart production and satisfy its financial deadline with ExxonMobil.
"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 this month. "Not only have we demonstrated all required operator capabilities and financial requirements, but we have gone above and beyond those requirements. Today’s decision [the Santa Barbara County Board of Supervisors vote to deny permit transfers on Dec. 16, 2025] does not impact Sable’s ability to continue operating the SYU facilities and pipeline system or its plans to re-commence oil sales."
