Court Rejects California Bid to Halt Sable Offshore Pipeline Operations

A federal court has delivered a key ruling in the ongoing dispute over Sable Offshore’s California pipeline, marking the latest development in a closely watched battle involving state regulators and energy infrastructure.

(Reuters) — A U.S. District Court on May 28 denied the California Department of Parks and Recreation's bid to stop oil producer Sable Offshore Corp. from moving oil on a long-disputed pipeline linked to the Santa Ynez offshore platform.

The denial marks a setback for California's efforts to stop the Santa Ynez project, which Sable restarted in March after the federal government's intervention. For Sable, it marks a major win, sending the company's shares up nearly 12%.

• The Department of Parks and Recreation had sought preliminary injunctive relief, citing irreparable harm to it from the use of a section of Sable's pipeline under the Gaviota State Park.
• The U.S. District Court for the Central District of California said the department "manifestly failed to demonstrate that it will suffer irreparable harm in the absence of preliminary injunctive relief."
• California State Parks is disappointed by the court decision and will continue to challenge Sable's "egregious trespass on public land", a spokesperson said in a statement.
• Several other legal challenges from various California state bodies, including a lawsuit against the U.S. Department of Energy, continue to progress. Most are at preliminary stages, the district court noted in its order on May 28.