The state has fired a new salvo in the battle over whether the oil pipeline that ruptured and spilled on the Santa Barbara County coastline in 2015 should be allowed to operate.
On March 14, Sable Offshore Corporation announced that the repaired pipeline was back in operation for the first time in more than a decade. The company didn’t have all the permits the state required for the restart of operations. But, President Trump invoked a Korean War-era law which the federal government contends allows it to step in to order the production of essential materials in the case of a national emergency.
Now, the state filed a suit over the federal approval of Sable’s restart effort, with the state attorney general labeling it “executive overreach."
"The Department of Energy's baseless order evades state law, state court orders, and a federal court-approved consent decree," said California Attorney General Rob Bonta. He said it also violates federal law and the Constitution. "We won't let this outrageous federal overreach go without a fight."
He said the Trump Administration’s use of the Defense Production Act is built around the federal government’s argument that there is a national emergency.
"Department of Energy Secretary Chris Wright claims the oil needs to 'promote the national defense, and to maximize domestic energy supplies.' I call B.S.," said Bonta. "No matter how much President Trump may claim there's a so-called national energy emergency, it's just not true. The U.S. already produces significantly more oil and gas than we use. Even if there was an energy emergency, which there isn't, the amount of oil the Las Flores pipeline would contribute would be negligible."
There are lots of twists and turns in the fight. The pipeline is essential to get oil from three oil platforms off the Santa Barbara County coastline onshore, and to refineries in Kern County.
When the pipeline ruptured on the Gaviota Coast in 2015, it caused a 140,000-gallon oil spill. It led to the platforms being idled for more than a decade.
Sable sought permission from the State Fire Marshal’s Office to repair and restart the system. When those efforts stalled, the company argued that federal regulators should oversee the pipeline. The federal government agreed, approving the restart plan in weeks. But a number of lawsuits led to orders disrupting the startup plans.
Environmentalists and some state agencies contend that restarting the decades-old facilities sets the stage for another disaster.
Then, this month, the Trump Administration used the Defense Product Act to order Sable to do what the company wanted to do anyway, which was to resume production.
The attorney general said the order is unlawful.
"The Defense Production Act is rarely invoked," said Bonta. "There's not an overwhelming body of law here."
President Trump used the act during his first term in office to step up production of ventilators and other equipment to help combat COVID-19.
President Joe Biden invoked the law in 2021 to help step up production of fire hoses, after a string of California wildfires created a critical shortage of them. Bonta thinks in this case, the Trump Administration’s action isn’t motivated by the public good. The Attorney General believes this action is motivated by Trump wanting to help the oil industry.
"Sad, and tragic, and embarrassing for him," said Bonta. "Trump seems hell-bent on doing everything he can to prop up and provide giveaways to the oil industry."
Sable reports in Securities and Exchange Commission filings that it expects to start selling 50,000 barrels of oil a day as of April 1. The company is hoping to have all three of its offshore oil platforms fully up and running in June.
Sable has yet to comment on the new lawsuit.
Last week, the State Parks Department sued Sable for trespassing. A four-mile section of the pipeline passes through Gaviota State Park. The state contends the oil company is trespassing by pumping oil through the pipeline without valid current permits. Sable actually filed suit against the state agency first, to try to reaffirm its right to use the pipeline corridor.
The legal battle taking place on multiple fronts could continue for some time. But, as of now, the oil is flowing through the pipeline system for the first time in more than a decade.
