Coastal Commission Proposes $15 Million Fine Against Sable Offshore for Unauthorized Work

The California Coastal Commission staff have recommended imposing a nearly $15 million fine on Sable Offshore for what they allege to be unpermitted construction activities along the Gaviota coast.

The proposed penalties also include a mandate for the oil company to devise a restoration plan for the affected areas. This decision is set to be deliberated during the Coastal Commission’s meeting from April 9-11 in Santa Barbara.

According to a report released on March 28, Sable Offshore has been accused of performing unauthorized development on the pipeline connected to the Santa Ynez Unit’s three offshore platforms. This pipeline previously suffered from a corrosion-induced burst during the 2015 Refugio Oil Spill. Sable Offshore, however, asserts that their actions are covered under permits issued in 1988 to the former owners of the pipeline, arguing that their work constitutes repairs, not new development.

Photos from a recent California Coastal Commission report alleging that Sable Offshore is conducting unpermitted work in the Refugio area. (courtesy)

Despite Sable’s stance that Santa Barbara County is the rightful permitting authority due to a settlement agreement barring county interference, the Coastal Commission has already issued three cease-and-desist orders against the company, the latest being dependent on Sable successfully applying for the necessary permits.

The standoff has led to legal action, with Sable suing the Coastal Commission for jurisdictional overreach and a case management conference scheduled for April 23 in Santa Barbara County Superior Court. Despite the ongoing legal battles, Sable has reportedly continued operations without complying with the cease-and-desist orders, refusing to halt development work in the coastal zone or apply for the requisite coastal development permits.

California Attorney General Rob Bonta is aware of the enforcement issues but has not yet intervened. If the Coastal Commission’s members approve the staff’s recommendations, Sable Offshore faces one of the largest fines the commission has ever considered, along with requirements to restore impacted environmental areas and obtain permits for past and future work.

The outcome of this pending action, as well as the company’s compliance and the broader impacts on oil production operations, remain to be seen.

The public is invited to attend the deliberations at the Hilton Beachfront Hotel in Santa Barbara, where the future actions against Sable Offshore will be determined.