California Appeals Court Upholds Injunction and $18 Million Penalty Against Sable Offshore Pipeline Repairs

Nypost.com reported. The decision concerns cease-and-desist orders and an $18 million penalty tied to repair work on the Santa Ynez pipeline system in Santa Barbara County. Sable acquired the pipeline assets in 2024 after the system had been inactive since a 2015 rupture of Pipeline 324 that spilled crude oil along the coastline.

Coastal development permits for the system date to 1986. The commission argued that the repairs constituted new development requiring fresh approvals. Company attorney Jeffrey Dintzer said Sable was disappointed by the ruling but noted that significant issues remain unresolved regarding the orders and penalties.

He stated that oil production from federally leased offshore platforms continues, along with flows through the pipeline to Kern County and to El Segundo for purchase by Chevron. The repairs at issue were completed almost a year ago, he added. Dintzer said Sable plans to conduct discovery and challenge the basis for the orders and penalties.

Options under consideration include an appeal to the California Supreme Court, a rehearing request in the Court of Appeal, or continued litigation in the trial court. The company has more than a half-dozen lawsuits and enforcement actions pending, including cases in the Central District of California and the Ninth Circuit.

The federal government has sided with Sable in separate filings challenging California’s authority over aspects of offshore oil transportation and production.