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 the federal government approved the restart effort.
Sable Offshore Corporation's stock rose nearly 20% in price 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 restart approval by the Pipeline and Hazardous Material Safety Administration.
Sable had sought approval from the State Fire Marshal's Office to restart the pipeline, but the agency has yet to issue a ruling. The company switched its strategy in November, contending 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 idled because they had no way to move oil.
The company contends it's 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.
