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Posts Tagged ‘California Coastal Commission’

Another small step toward the resumption of Santa Ynez Unit production

Posted in California, energy policy, Offshore Energy - General, Regulation, tagged , , , , , , on November 11, 2024| Leave a Comment »

The Santa Barbara County Planning Commission has approved the transfer of the onshore pipeline from Exxon to Sable Offshore. Although the Environmental Defense Center (EDC) is appealing that decision to the Board of Supervisors, the Board’s vote will likely be a 2-2 tie. Supervisor Hartmann’s property is close to the pipeline and she has recused herself from votes on the matter. A 2-2 vote would be a win for Sable, because a tie vote means the planning commission decision stands.

As an investment, Sable is a “pure California permitting play,” which means the risks are high. The company’s chances for success are almost entirely dependent on receiving the necessary approvals from State and local agencies.

If Sable is able to navigate the permitting gauntlet, the company’s prospects are good. The Santa Ynez Unit, Sable’s only asset, has substantial oil and gas resources and well-maintained production facilities.

Sable’s share price soared to $23.43 on 9/3 after the company reached agreement with Santa Barbara on the installation of required pipeline valves. The price bounced further to $28.30 on 9/19 before falling sharply to $19.43 on 10/9 after being cited for failing to get California Coastal Commission approval to install the required valves. The price rebounded to $24 following the County Planning Commission’s approval of the transfer from Exxon to Sable before settling at $23 on Friday, the date of the EDC appeal.

Expect the financial and psychological roller coaster ride to continue.

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SpaceX lawsuit against the California Coast Commission: Many long-time offshore industry observers are nodding approval.

Posted in California, Regulation, tagged , , , , on October 21, 2024| Leave a Comment »

Per a related post, the full SpaceX lawsuit is attached. It’s mostly exhibits, so don’t be intimidated by the length.

This excerpt summarizes the case nicely:

“Rarely has a government agency made so clear that it was exceeding its authorized mandate to punish a company for the political views and statements of its largest shareholder and CEO. Second, the Commission is trying to unlawfully regulate space launch programs—which are critical to national security and other national policy objectives—at Vandenberg Space Force Base (the Base), a federal enclave and the world’s second busiest spaceport.”

Even Gov. Newsome sides with SpaceX saying “I’m with Elon.”

Will this case teach the Commission some humility? Probably not, but we shall see.

spacex-v-california-coastal-cmmissionDownload

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California Coastal Commission to Sable: How dare you!

Posted in California, Offshore Energy - General, tagged , , , , , , on October 15, 2024| Leave a Comment »

The California Coastal Commission, which exercises enormous power and limited restraint, is making headlines for preventing SpaceX, arguably America’s most extraordinary company, from increasing the number of satellite launches from the Vandenberg Space Force Base, a Federal facility. The Coastal Commission made this decision just 3 days before SpaceX’s awe inspiring rocket booster catch in Texas:

Sable Offshore, despite being spawned by super-major Exxon, is a relative minnow compared to SpaceX, at least politically. The restart of production from Sable’s Santa Ynez Unit is facing another obstacle now that the Coastal Commission has entered the fray.

The Coastal Commission has ordered Sable to stop the installation of pipeline shutdown valves that are not only prudent, but required by the California Fire Marshall, the State’s safety authority for pipelines. The Commission has intervened by asserting that the pipeline upgrades require a coastal development permit.

Sable argues that repair and maintenance activities are exempt from Coastal Act permitting requirements, and have been conducted under their existing permits for 35+ years.

The Commission does not like to see its authority questioned, and is influenced by groups whose sole objective is to prevent the restart of production. We’ll see how this sorts out.

Center for Biological Diversity photo of pipeline repair work as published by Noozhawk

Meanwhile, Elon Musk did not hold back after the Commission’s decision not to allow an increase in the number of launches from Vandenberg:

“The California Coastal Commission should be dissolved as an organization.  An utterly insufferable and misanthropic group of Karens if there ever was one! Their idea of the perfect coastline is one where there are zero humans or even signs of human! Anyone who has had any dealings with them will attest to this.  They should not exist.”

Ouch! Tell us what you really think Elon! 😉

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