California Court Upholds Injunction on Pipeline Repairs but Oil Flow to Chevron Continues

The California Second District Court of Appeal on June 21 upheld an injunction sought by the California Coastal Commission against Sable Offshore Corp. over repair work on the Santa Ynez pipeline system. The ruling affirmed a lower court decision that sided with regulators who issued cease-and-desist orders in late 2024 and early 2025 and later imposed an $18 million penalty.

Sable, a Houston-based energy company operating through subsidiary Pacific Pipeline Company, had acquired the pipeline assets in 2024 and performed repairs that included replacing pipe sections and adding safety equipment. Company attorney Jeffrey Dintzer said Sable was disappointed by the decision.

“Significant issues still must be resolved before any final determination is made regarding the legitimacy of the Coastal Commission’s cease-and-desist orders and financial penalties,” he said.

Dintzer stated that oil production from federally leased offshore platforms and flow through the pipeline to Kern County and El Segundo would continue, with purchases by Chevron. He noted the case concerns only repairs completed almost a year ago. Sable plans to conduct discovery to challenge the orders and penalties.

Options include an appeal to the California Supreme Court, a rehearing request in the Court of Appeal, or return to the trial court. The company is involved in more than a half-dozen lawsuits and enforcement actions, with pending 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 offshore oil transportation and production.