Federal Judge Upholds Federal Oversight of Sable Offshore Pipeline

A federal judge has ruled that Sable Offshore Corp.'s Santa Ynez Pipeline System (SYPS) can continue operating under federal oversight, affirming regulatory authority over the pipeline system offshore Santa Barbara.

The case stems from a March order issued by the Trump administration under the Defense Production Act (DPA), directing the pipeline's reopening to support West Coast crude oil supplies and national security objectives.

The DPA order transferred regulatory authority over the pipeline and related assets to the US Pipeline and Hazardous Materials Safety Administration (PHMSA), which authorized its restart. California regulators, which had blocked operations following a 2015 pipeline rupture that released about 2,500 bbl of crude oil, sued to prevent the line from reflowing.

Sable sought to restore operations in 2024 after acquiring the assets from ExxonMobil Corp. The effort faced opposition from the California Office of the State Fire Marshal (OSFM) - the state's regulator of the line - in addition to other state regulators and environmental and community groups.