Judge lets Texas oil firm keep pumping on California coast, shifts oversight to federal agency
A federal judge permitted Sable Offshore Corp to continue oil pipeline operations along Santa Barbara County and moved most regulatory authority to a federal agency, while imposing a nearly $1.5 million fine for breaching a consent decree.
In a detailed 45-page opinion, U.S. District Judge Stephen V. Wilson authorized Texas-based Sable Offshore Corp to keep pumping oil through pipelines that run along Santa Barbara County’s coast, citing an emergency order from the Trump administration and the Defense Production Act. The ruling transferred primary regulatory jurisdiction from California agencies to the U.S. Pipeline and Hazardous Materials Safety Administration, effectively limiting the state’s direct oversight while still requiring biannual compliance reports and allowing court challenges to any violations.
Wilson also ordered Sable to pay almost $1.5 million for breaching a federal consent decree that set conditions for the project’s restart. The case follows a 2015 pipeline rupture near Refugio State Beach and reflects the administration’s push to revive dormant offshore oil operations. California Attorney General Rob Bonta’s office and the Environmental Defense Center condemned the decision as a federal usurpation of state authority and signaled intent to appeal. Legal experts warned the ruling could establish a framework for using the Defense Production Act to override state environmental regulations in future energy projects.
Why it matters
It transfers control of a contentious coastal oil project from California to the federal government, influencing environmental oversight and legal precedent.
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