A company’s efforts to restart a shuttered oil pipeline, which ruptured in Santa Barbara County in 2015, causing a major spill, have suffered a significant setback.
Sable Offshore Corporation bought the pipeline, three offshore oil platforms, and other related facilities from ExxonMobil. The company sought Santa Barbara County’s approval of the ownership transfer because key county operating permits are tied to ownership.
The County Planning Commission recommended approval of the transfer. However, in October, citing several concerns about Sable’s restart efforts, Santa Barbara County Supervisors voted 4 to 1 against the ownership transfer. The issue was up for a final vote on Tuesday.
The 2015 pipeline rupture on the Gaviota Coast spilled more than 140,000 gallons of oil. There was a proposal to replace it, but it has been sold twice since then, with the plan changing to repairing it.
Environmental groups contend restarting the decades-old facilities would set the stage for another disaster. Sable officials said they have gone well past what’s required to ensure safety.
However, as part of the preliminary vote, County Supervisors directed county planners to return with wording for denying the transfer.
"The administrative findings detailed at the operator capability finding required for these facilities cannot be made, because Sable has displayed a record of non-compliance related to their operation of the facilities," said Errin Briggs, Deputy Director of the County's Planning & Development Department. "This record includes a pattern of failing to notify regulatory agencies prior to performing work, failing to comply with applicable laws, and ignoring regulatory agency directives, amongst other deficiencies."
"The records show that Sable is not capable of responsibly operating the facilities, and that Sable lacks the necessary resources of responding to a disaster or abandoning the facilities," said Tara Rengifo, Senior Attorney with Santa Barbara’s Environmental Defense Center, which filed the appeal that put the issue before County Supervisors. "Concerning compliance with existing requirements findings, there are permit compliance issues with respect to the pipeline in particular."
However, Sable officials said they have gone to great lengths to ensure pipeline safety.
"This is about ending oil and gas (development in the county), plain and simple. This is now one of the safest pipeline systems in the world, subject to the most stringent standards, and managed by a team with decades of exemplary operating experience," said Steve Rush, a Sable Vice President.
"County staff has now recommended approval for these permit transfers three times. Draft findings now suggest that the operator capability finding cannot be made," Rush continued. "We have demonstrated, and continue to demonstrate, that Sable meets the owner, operator, and guarantor findings for all three facilities. While the draft findings now complain that Sable did not ask permission before beginning work, Sable and county staff discussed these repairs before any work began."
More than two dozen people testified during the public hearing.
"Sable's record makes clear that the company does not have the skills, training, or financial resources to operate these facilities in compliance with required permits," said Ted Morton, Executive Director of Santa Barbara Channelkeeper.
"In our daily safety meetings, one of the first things we talk about are people, the environment, and facility integrity," said Sable employee Patrick Kennedy.
In the end, County Supervisors voted 3 to 1 to deny the transfer. Supervisor Joan Hartmann did not participate in the vote because it was determined there was a potential conflict, as the pipeline was much closer to her property than previously believed.
One of the no votes was a supervisor who has traditionally supported oil projects.
"There's just too much evidence in the record that shows a pattern of non-compliance, and either ignorance of our rules, or just blatant disregard," said Santa Barbara County Supervisor Steve Lavagnino. "But, you guys (Sable) have put me in a box, and if I'm going to follow the law and what our ordinance says, you gave me no other option."
The State Fire Marshal’s Office is considered the primary regulator of the pipeline. It has yet to release a decision on whether it can reopen.
But, Sable announced a few weeks ago it will seek federal jurisdiction over the pipeline, apparently in the hopes a federal agency might be more open to the project.
Sable officials have stated that if they can’t use the pipeline, they may use ocean tankers to transport the oil to processing facilities. The pipeline was constructed in the 1980s to replace oil tankers, as many considered it a safer method of transporting oil.
