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Archive for the ‘California’ Category

John Smith informs me that today (6/6/2025), a Santa Barbara Superior Court issued an order preventing the restart of the Santa Ynez Unit’s onshore pipeline pending Court resolution of the dispute.

Sable’s shares plunged 18% in response to the news.

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During a recent dive survey at Platform Holly off California’s coast, scientists from the University of California, Santa Barbara (UCSB) had to pause fieldwork because dozens of sea lions took shelter around the structure.

The reason? A pod of killer whales had been spotted hunting near another offshore platform in federal waters.

These real-time encounters reveal more than marine drama. They highlight the ecological role that offshore platforms can play as part of the seascape. UCSB’s work is part of our ongoing study, Understanding Biological Connectivity Among Offshore Structures and Natural Reefs, which explores how marine life moves among natural and manmade habitats.

See Rigs-to-Reefs+++

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For the reasons set forth herein, the application of the California Coastal Commission for issuance of a preliminary injunction is granted. No bond is required. The Commission shall present a written order for entry by the court.

The roller coaster ride continues. Sable Offshore’s stock price plunged in response to the latest order.

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John Smith’s excellent decommissioning presentation at the recent Western States Petroleum Assoc. luncheon in Santa Barbara is attached. John used an amended version of Bob Byrd’s OTC powerpoint, adding slides on the proposed California Marine Legacy Act amendments.

For those who have been following the Santa Ynez Unit story, Harmony, Heritage, and Hondo are the platforms in that unit. Platform Harmony, where production resumed on the date of John’s presentation (5/15), is in 1198′ of water and is one of the world’s largest offshore structures.

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05/19/2025

HOUSTON–(BUSINESS WIRE)— Sable Offshore Corp. (“Sable,” or the “Company”)(NYSE: SOC) today announced that as of May 15, 2025, it has restarted production at the Santa Ynez Unit (“SYU”) and has begun flowing oil production to Las Flores Canyon (“LFC”). Additionally, with the completion of the Gaviota State Park anomaly repairs on the Las Flores Pipeline System (the “Onshore Pipeline”) on May 18, 2025, Sable has now completed its anomaly repair program on the Onshore Pipeline as specified by the Consent Decree, the governing document for the restart and operations of the Onshore Pipeline.

Seven of the eight sections of the Onshore Pipeline have been successfully hydrotested. Sable will complete the final hydrotest in order to meet the final operational condition to restart the Onshore Pipeline as outlined in the Consent Decree. Sable expects to fill the ~540,000 barrels of crude oil storage capacity at LFC by the middle of June 2025 and subsequently recommence oil sales in July 2025.

Production Restart

  • On May 15, 2025, Sable initiated the flow of oil production from six wells on Platform Harmony of the SYU to LFC at a rate of ~6,000 barrels of oil per day.
  • Sable has been testing wells on Platform Harmony throughout May 2025 and the well tests have performed consistently stronger than they did at the time of shut-in on May 19, 2015 when the SYU produced approximately 45,000 barrels of oil equivalent per day.
  • Approximately 30% of the 32 producing wells at Platform Harmony have been tested as of May 18, 2025 with the remaining Platform Harmony wells projected to be tested over the course of the next several days.
  • Sable expects to initiate production from the additional 44 wells on Platform Heritage and the additional 26 wells on Platform Hondo in July 2025 and August 2025, respectively.

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In 1904 the famous “Old Maud” well (pictured) in Orcutt, Santa Barbara County, produced a million barrels in the first 100 days.

This week, the Santa Barbara County Board of Supervisors voted 3-1 to establish a framework to prohibit new oil and gas operations and phase out existing operations.

Given the industry’s long history in the County, one would have expected consultation with the remaining companies prior to that decision.

County staff informed Supervisor Bob Nelson, who voted against the ordinance, that they had not reached out to oil companies. Nelson described the ordinance as the nuclear option.

Charles Katherman, who started his own company in Santa Barbara 40 years ago, criticized the county for a lack of communication leading up to the ordinance. “What you’re proposing or looking at to vote on is a euthanasia of my industry,” Katherman said.

When John Smith told me about the County’s decision, I wondered what the late Darwin Sainz would think. Darwin was a proud 8th generation Californian, a well known rancher and oil industry veteran, a community leader, and Citizen of the Year in the Santa Maria Valley. His grandfather worked on the famous Old Maud well. Darwin was effective at reaching out to parties with opposing views and promoting dialogue and compromise. Sadly, reasoned dialogue no longer seems to be an option.

Darwin Sainz

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A good Nick Welsh, Santa Barbara Independent article has been brought to my attention by John Smith. Bonus points for the baseball analogy:

In baseball, ties famously go to the baserunner, but in county government it’s forced a legal fight in the courts.”

The oil company Sable Offshore is insisting that when the County Board of Supervisors voted 2-2 on whether or not to allow another oil company, Exxon, to transfer its permits to Sable, the tie goes to Sable.”

Accordingly, Sable — much in the limelight recently — just filed a lawsuit against the Santa Barbara County Board of Supervisors in federal court to make that point. Joining Sable in this dispute is ExxonMobil, the oil giant that sold Sable its three offshore platforms, its 120-mile pipeline, and its onshore oil storage and processing facilities known as the Santa Ynez Unit two years ago.”

Because the Planning Commission had voted  3-1 to allow the transfer, Sable argues that the 2-2 Supervisors vote upholds the Planning Commission decision.

Never a dull moment in the Santa Ynez Unit restart doneybrook. More on the tie vote here and here.

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John Smith reports that Sable has cleared another significant hurdle in its attempt to restart production in the Santa Ynez Unit. The California DEPARTMENT OF PARKS AND RECREATION has determined that no permit is required for the pipeline anomaly digs in Gaviota State Park (see attached).

The reasons for the exemption are that the project consists of repairs to an existing facility with no expansion of use, and the footprint of the pipeline remains the same.

Maybe the SYU restart is not Mission Impossible after all.

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John Smith shared an outstanding paper (attached) that was presented by co-author Robert Byrd at the SPE Regional Meeting in Garden Grove, CA last week.  

 

John Smith: “My objective in writing the paper is to hopefully spur legislators to recognize the benefits of reefing and the legislative fixes required to facilitate reefing and the removal of aging infrastructure.  The California Department of Fish and Wildlife Habitat Lead was very complimentary of the paper and has distributed it to the Interagency Team which is developing a California Artificial Reefing Plan.”  

John adds: “They are in the process of creating a statewide artificial reef plan and you can sign up for updates and get more information. The California Artificial Reef Program (CARP) Plan won’t discuss the specifics of Rigs-to-Reefs but will be compliant with the National Fisheries Enhancement Act and National Artificial Reef Plan and meet the BSEE requirement of having an adopted state artificial reef plan. The intent is to add an addendum to the plan when resources become available to move Rigs-to-Reefs forward in California. You can check out the latest program update that further discusses the CARP Plan and Rigs-to-Reefs.”

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