Sable Offshore Corp. announced Monday that it would use shuttle tankers as an alternative oil transportation plan if it encounters more delays with restarting its Santa Barbara County pipeline system.
The company also said it has submitted a formal request to the California Office of the State Fire Marshal to restart the pipeline.
Kara Garrett, a spokeswoman for OSFM, confirmed that Sable submitted its updated restart plan on Sept. 11 and that the documents are still under review.
Before restarting the pipeline, according to OSFM, pipeline operators must adhere to set standards. Sable said it has met the conditions.
“Among these satisfied conditions are anomaly repairs, safety valve installations, control room enhancements, and the production of all supporting documentation and analyses,” the company said in a statement.
Sable is still pursuing state approval to restart oil production but proposes using shuttle tankers in an Offshore Storage and Treating Vessel (OS&T) strategy to transport oil if there are “delays,” the company said.
“Continued delays related to the Onshore Pipeline will prompt Sable to fully pivot back to a leased OS&T strategy, which was utilized to process SYU production in federal waters from 1981-1994,” Sable said in the statement.
The Santa Ynez Unit, which includes three offshore oil and gas platforms, produced 160 million barrels of “oil equivalent” in that time, according to the company.
While working on its restart plan, and going through approvals and pipeline repairs, Sable has faced scrutiny from local and government environmental groups.
The California Coastal Commission fined the company $18 million for doing pipeline work allegedly without permits, and the Santa Barbara County District Attorney’s Office filed criminal charges related to that pipeline work last week.
“Sable’s dangerous pivot to a floating processing plant appears to be a ‘hail Mary’ from a company that, for good reason, has failed to win necessary approvals at the state and local levels,” Alex Katz, executive director of the Environmental Defense Center, said in response to the company’s announcement.
The Environmental Defense Center has a pending lawsuit against Sable and OSFM that contests state waivers granted to Sable. The lawsuit opposes OSFM’s decision to grant the pipeline waiver to operate, claiming OSFM did not “properly consider the risks of operating the corrosion-prone pipeline.”
“With its latest move, Sable confirms what we’ve known all along — this was never about what’s best for California. It is, and always has been, about lining the pockets of a few Texas-based executives, regardless of the cost to our community,” Katz said.
“In its short existence, Sable has racked up lawsuits, criminal charges and a historic $18 million fine from the state Coastal Commission after openly ignoring cease-and-desist orders.”
California Coastal Commission spokesman Joshua Smith said the organization has no comment regarding Sable’s latest announcement.
Sable said its timeline for pursuing the OS&T strategy would begin with a lease contract by the end of 2025.
