The stock of a company involved in controversial efforts to restart the Santa Barbara County oil pipeline, which ruptured in 2015, spiked Friday, after word that the federal government approved the restart effort.
Sable Offshore Corporation's stock rose nearly 20% in price on Friday.
On Wednesday, the U.S. Ninth Circuit Court of Appeals rejected a request by a coalition of environmental groups seeking a stay of the Pipeline and Hazardous Materials Safety Administration's approval to restart the pipeline.
Sable had sought approval from the Office of the State Fire Marshal to restart the pipeline, but the agency has yet to issue a ruling. The company switched its strategy in November, contending that the pipeline falls under the supervision of federal regulators. The federal agency quickly gave its approval. However, Sable is still facing a myriad of other legal challenges from regulators and project opponents.
Sable is seeking to restart the pipeline, which ruptured on the Gaviota Coast in 2015, causing a massive oil spill. Restarting the pipeline would allow the resumption of operations for three offshore oil platforms that had been idled because they had no means of transporting oil.
The company contends it has repaired the pipeline and added safety improvements beyond what's legally required.
Environmentalists say restarting the aging infrastructure would set the stage for another major accident.
