Federal Court Rejects Sable Offshore Immediate Permit Transfer to Restart Oil and Gas Operation on Central Coast

Edhat Staff
Edhat Staff
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2015 Refugio Oil Spill (edhat file photo)

A federal judge ruled Friday evening denying Sable Offshore Corp.’s request for an immediate transfer of permits to restart old oil and gas facilities on California’s Central Coast. The transfer request includes the defective pipeline responsible for the 2015 oil spill on Refugio Beach in Santa Barbara, deemed one of the worst oil spill disasters in state history.

Judge Dolly M. Gee also ordered the Santa Barbara County Board of Supervisors to revisit the transfer at a public hearing within 60 days.

Texas-based Sable is seeking to take over permits to operate the Santa Ynez Unit (SYU)—formerly owned by ExxonMobil—which includes three offshore drilling platforms, onshore processing plants, and the Refugio oil spill pipeline. A tie vote by the Santa Barbara County Board of Supervisors in February stalled the transfer, prompting Sable, Exxon, and affiliates to sue to force it; in July, the court allowed the Environmental Defense Center and its clients to intervene. Judge Gee ruled that if the board deadlocks again, it must hold another hearing within 45 days.

“We are pleased with Judge Gee’s ruling rejecting Sable’s request for an immediate transfer of permits,” said EDC Chief Counsel Linda Krop. “Under Santa Barbara County law, the Board of Supervisors must ensure that any company taking over oil and gas permits is able to operate responsibly and safely, and a tie vote doesn’t cut it. We look forward to having another opportunity for the public to weigh in on this project and highlight Sable’s operational history, which includes digging up and destroying sensitive habitats along the pipeline route and ignoring multiple cease-and-desist orders from the California Coastal Commission, leading to a record $18 million fine against the company.”

The decision on Friday was another loss for Sable last week after a different federal judge ruled against the company’s motion to dismiss a separate lawsuit by the Center for Biological Diversity.

“These offshore oil plans are so old and outdated that it’s clear this case should go forward. I’m glad the court saw through Sable’s attempt to shut it down,” said Kristen Monsell, oceans legal director at the Center for Biological Diversity. “Conditions have changed dramatically since these drilling plans were approved in the ‘80s, and federal officials should never have waved this project through without a closer look at the risks to the ocean. We look forward to speaking up for the coast and presenting our arguments in court.”

Last week, Climate Rights International (CRI) published a briefing paper calling on state leaders to conduct a full environmental review of the restart project, including opportunities for public input and formal hearings. So far, the project has moved forward with zero environmental review and no opportunity for public input at the state level, the EDC states in a press release.

On Saturday, the state legislature approved a bill that clarifies the requirement for a new Coastal Development Permit (CDP) for the repair, reactivation, or maintenance of idled facilities like the Santa Ynez Unit, which has been shut down since the 2015 spill. If signed by Governor Newsom, the law will take effect January 1.

Earlier this year, Sable rushed to repair dozens of sections of the heavily corroded pipeline despite multiple cease-and-desist orders from the state Coastal Commission and numerous notices of violation from the Coastal Commission and other state agencies.

In April, the Coastal Commission issued a record $18 million fine and a third cease-and-desist order, however the company immediately continued its work on the pipeline until a Superior Court judge issued an injunction halting repairs. According to the Coastal Commission, much of the company’s work destroyed or disrupted sensitive habitats in the Coastal Zone.

California Legislators and 15 Colleagues Demand Answers on the Trump Admin’s Influence in Restarting Oil Drilling Operations Off Santa Barbara Coast

On Tuesday, U.S. Representative Salud Carbajal, Senator Adam Schiff, Senator Alex Padilla, and members of the California congressional delegation demanded answers from the Trump administration on its involvement in Sable Offshore’s attempts to restart offshore oil drilling.

In a letter to U.S. Secretary of the Interior Doug Burgum and Bureau of Safety and Environmental Enforcement (BSEE)’s Principal Deputy Director Kenneth Stevens, the lawmakers requested information on what actions BSEE has taken to help Sable restart the project and question whether BSEE ignored their environmental responsibilities.

“It is unclear whether the Trump administration bought into the company’s inaccurate statements or whether BSEE’s July 25 statement references different information entirely. BSEE’s July 25 statement also calls into question whether the Bureau had received accurate information from the company when the Bureau decided to issue 10 approvals for well modification permits for Sable in July,” the lawmakers wrote.

“Ensuring safety and reducing the environmental impact of oil production in the OCS are BSEE responsibilities, and they require careful consideration. As America has experienced throughout its history—such as the Exxon Valdez, Deepwater Horizon, and California oil spills—the risk to the economy and the environment from oil spills is simply too great for hasty decisions that do not comprehensively take into account science or state and federal law,” the lawmakers concluded.

The lawmakers emphasized how in addition to a series of misleading statements asserting that oil production has resumed, Sable has blatantly disobeyed directives from California agencies that are required for offshore oil and pipeline operations in the state.

In addition to Carbajal, Schiff, and Padilla, the letter was signed by U.S. Representatives Nanette Barragán (D-CA-44), Julia Brownley (D-CA-26), Judy Chu (D-CA-28), Laura Friedman (D-CA-30), John Garamendi (D-CA-08), Jared Huffman (D-CA-02), Mike Levin (D-CA-49), Ted Lieu (D-CA-36), Zoe Lofgren (D-CA-18), Dave Min (D-CA-47), Jimmy Panetta (D-CA-19), Luz Rivas (D-CA-29), Brad Sherman (D-CA-32), and Derek Tran (D-CA-45).

Earlier this year, Carbajal and Schiff wrote to Governor Gavin Newsom raising concerns about the potential restart of offshore oil drilling operations along California’s Gaviota Coast by Sable Offshore Corp. The full text of the letter can be found here.

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15 Comments

  1. Thank goodness we still have people with intelligence and integrity in our judicial system. The whole permit transfer scheme is very dodgy, imo. Exxon can’t operate it anymore, so they created a “separate” (wink, wink) company called Sable. Exxon “loaned” (more winks!) Sable the $$ to buy the operation, including the permits. Sable then acts just like Exxon, ignoring cease & desist orders and pushing commissioners around to get them to do their bidding, so they can quickly raise some cash to “pay back the loan” (just eyerolls).
    Thank you Judge Gee.

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