A Santa Barbara County Superior Court judge ruled on Friday that Sable Offshore Corp. cannot restart the Las Flores oil pipelines until it receives approval from the Office of the State Fire Marshal.
In her decision, Judge Donna Geck said Sable is not exempt from a previous settlement between the pipelines’ previous owner, Plains All American, and the federal government.
Sable had previously argued that it should be exempt from a court injunction regarding its planned restart because Plains All American entered into the settlement, not Sable.
However, Geck said the agreement applies to Sable because its authority to operate the pipelines originated with Plains.
The pipelines and offshore oil platforms in the Santa Ynez Unit have been shut down since the 2015 Refugio oil spill. Sable Offshore Corp. has taken over the facilities and permits issued to Plains in the past, and has used those permits to argue that it has the authority to perform work on the pipeline.
“Sable has not demonstrated any right to operate the Las Flores pipelines separate from the rights derived from Plains and subject to the Federal Consent Decree,” Geck said in her decision. “(The) Las Flores pipelines may not be restarted without obtaining a State Waiver from the OSFM.”
Geck added that the Office of the State Fire Marshal cannot be removed from the restart process even though the federal Pipeline and Hazardous Materials Safety Administration took control of the pipeline oversight.
The Texas-based oil company recently asked the PHMSA to take over control of the pipeline as an interstate project. PHMSA has the authority to regulate pipelines between states under the Pipeline Safety Act.
The pipelines were previously transferred to the state authority in 2016 because they do not leave the state.
PHMSA agreed with Sable and resumed authority of the pipeline system in December. The Office of the State Fire Marshal was informed that the pipeline would be under the authority of PHMSA moving forward.
However, Geck ruled that the federal consent decree states that the pipelines cannot be restarted without the state fire marshal’s approval.
“The court is not persuaded on this record that administrative actions taken by (Pipeline and Hazardous Materials Safety Administration) necessarily eliminates OSFM participation in the restart process,” Geck said in her recent court decision.
“From a legal standpoint, this project is stuck in the mud,” Linda Krop, the chief counsel for the Environmental Defense Center, said in a statement in response to the decision. “Not only does Sable still need approvals from the state fire marshal, but it has failed to get other necessary approvals, including an easement to operate through Gaviota State Park and a new coastal development permit from the California Coastal Commission. Sable is also enjoined from making repairs to the pipeline.”
The pipelines in question are connected to the oil production platforms known as the Santa Ynez Unit, located just off the Gaviota Coast. The two lines include CA 324 and CA 325, formerly known as Lines 901 and 903.
Line 901 was the pipeline that ruptured in 2015, causing the Refugio oil spill that dumped about 142,000 gallons of crude oil onto the coast and ocean.
Plains All American owned the pipeline at the time of the spill, but the pipelines were sold to ExxonMobil. Sable was formed shortly after and took over the entire Santa Ynez Unit, including the platforms, processing facility and transportation pipelines.
Plains All American was sued by the federal government and the State of California in March 2020. Plains settled the case by entering into the agreement that gives the Office of the State Fire Marshal the authority to grant restart approval for the pipelines.
A representative for Sable declined to comment on the court decision and the pipeline’s future.
