An update on Sable Offshore developments

In March, the Texas-based oil and gas company Sable Offshore restarted oil production from the Santa Ynez Unit after 11 years of inactivity, following a 2015 rupture that spilled over 100,000 gallons of crude oil near Refugio Beach. 

The restart was prompted by Secretary of Energy Chris Wright’s statement of approval following President Donald Trump’s March 13 executive order that invoked the Defense Production Act because of the war with Iran.

Despite the restart being in violation of an injunction placed on Sable prohibiting the restart of the specific or same oil pipeline, a federal judge ruled this summer it can continue operations. 

Federal judge rules Sable Offshore can continue pipeline operations

After months of opposition from local environmental groups, state judges and regulators, federal Judge Stephen Wilson ruled that the Sable pipelines can continue operations and shifted oversight to federal authorities.

As a federal judge, Wilson’s order “pre-empt[s] the enforcement of any state law that conflicts with Sable’s ability to operate the onshore pipeline.” The ruling takes oversight of the consent decree from California’s Department of Forestry and Fire Protection’s Office of the State Fire Marshal to the Pipeline and Hazardous Materials Safety Administration (PHMSA) — a federal agency part of the Department of Transportation. The state agency, PHMSA, will no longer have veto power over the pipeline’s operations.  

Additionally, Wilson fined Sable $1.5 million for violating the original consent decree without authorization from a state agency to restart the pipeline. 

Trump threatens to seize California coastal protections unless state adheres to list of demands

In a document obtained through a public records request by the Los Angeles Times, the Trump administration said it would remove California’s authority to protect its coastline unless state regulators agreed to over a dozen “corrective actions” that would benefit close allies of the White House. 

The obtained document is a draft of a federal review by the National Oceanic and Atmospheric Administration’s Office for Coastal Management which cites “a pattern of jurisdictional and regulatory overreach” regarding California coastal authorities. The review also states that the coastal authorities displayed “unjustified hostility and political bias against offshore drilling opportunities, oil and gas projects broadly, and SpaceX’s launch activities.”

According to the LA Times, the review states that future federal funding for the state’s coastal management program has been suspended “unless and until the identified deficiencies are satisfactorily addressed.” 

It directs coastal authorities to discuss “any outstanding concerns about regulatory burden and overreach” with Sable. Additionally, the state’s leading coastal agency must issue a statement by January pledging that California “will not categorically oppose initiatives led by certain entities, or relating to certain industries, such as oil and gas, or involving certain activities, such as offshore drilling.”

Sable Offshore digs up 12 sites to check for pipeline corrosion

Sable’s attorneys have notified county officials that they need county clearance to dig up 12 lengths of pipeline to determine levels of corrosion. If these 12 sites show 40% or more corrosion into the wall of the steel pipeline, the company is required to repair the damage. 

PHMSA requires that Sable conducts two corrosion inspections over 200 miles of pipeline twice a year for the first two years of operation, after which only one yearly test will be required.

An inspection revealed possible erosion in 12 lengths of pipeline where Sable has begun “validation digs” since Sept. 8, despite not yet receiving clearance by the county. Sable informed the county that the current validation sites are not located in the same locations that were repaired in 2017. 

A version of this article appeared on p. 3 of the Oct. 29 print edition of the Daily Nexus.