As posted on 9/10/2025 (prior to PHMSA’s assertion of jurisdiction): Given that the Sable pipeline will carry OCS production, it would seem to fundamentally be an interstate line (Federal jurisdiction), as it was when owned by Plains. Could DOT reverse the 2016 letter agreement? That is conjecture for the attorneys and courts to consider.
A new Bloomberg Law article explains PHMSA’s position after a challenge by the California AG:
PHMSA said state-based hurdles are preempted by federal authorizations in the emergency permit notice letter the agency sent to Sable last year. Because the pipeline originates on the Outer Continental Shelf, the system automatically comes under federal oversight, the agency said.
A law professor adds the following:
The administration is invoking interstate commerce to classify the pipeline as a federal issue, “arguing that this is between a place in a state and outside that state,” said Hannah Wiseman, a professor at the Penn State Dickinson Law.
They are claiming this under their interpretational authority, as opposed to the actual language of the Pipeline Safety Act,” she said.
The language of the law only assigns PHMSA jurisdiction over oil operations that run outside or between state lines, but here the agency is arguing the pipeline’s start point is on the OCS, not at the onshore processing facility, she said.
Not mentioned in the article but pertinent:
- In PHMSA’s favor, the onshore pipeline was initially under their jurisdiction.
- In California’s favor, a court approved Consent Decree clearly identifies the California Fire Marshal as the sole oversight authority.
Meanwhile, Kruti Shah cleverly summarizes the Santa Ynez Unit story in a series of posts on X. Click on the post below to get the full thread. Great read for Sable/SYU followers:
Bud's Offshore Energy (BOE) 