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Posts Tagged ‘Sable Offshore’

An apology letter from the California Coastal Commission (CCC) to SpaceX was part of a lawsuit settlement. SpaceX alleged political bias in the commission’s 2024 decision to deny increased Falcon 9 launches at Vandenberg Space Force Base, based on comments about Elon Musk’s political views and SpaceX’s labor practices.

Excerpt:

“In 2024, the Commission reviewed consistency determinations by the U.S. Space Force for SpaceX’s Falcon 9 launch program at Vandenberg Space Force Base. During that review, some Commissioners made negative comments about SpaceX’s labor practices and its Chief Executive Officer’s political views. The Commission acknowledges that these political comments were irrelevant to the Commission’s consistency review and were improper, and the Commissioners apologize for those comments.”

AI confirms my suspicions that formal CCC apologies are highly unusual 😉

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Update: Another EIA revision to Gulf of America oil production for Dec. 2025 (1.994 to 1.985 million bopd) means that 2019 retains the production record by the narrowest of margins – 1.898 to 1.897 million bopd. Stay tuned because this may not be the final word 😉.

Per EIA, Feb. 2026 production dipped a bit to 1.931 million bopd (chart below).

Meanwhile, California OCS oil production for FEB continued at about 10,000 bopd. This number may increase a bit for March, and more for April data when the first Sable sales are included. A big increase, by as much as 500%, should be apparent in the June report barring a court ordered shutdown.

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Sable’s updated PowerPoint presentation is attached.

Also, the 2025 compensation package for Sable CEO Jim Flores is attracting attention. Flores received $76 million in total compensation. The bulk of his pay came from more than $69 million in stock awards, alongside a $1.3 million salary and a $3.9 million bonus. 

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California Superior Court Judge Donna Geck denies Sable’s motion to lift the preliminary injunction.

Judge Geck’s ruling

(1) For the reasons set forth herein, the motion of real parties in interest Sable Offshore Corp. and Pacific Pipeline Company to dissolve or modify the preliminary injunction issued in this case is denied.

(2) The application of petitioners for issuance of an order to show cause why real parties should not be found in contempt and to enter additional orders is continued to May 22, 2026.

 The Judge concluded:

  • The court is mindful that there are many moving judicial and administrative parts relating to the restart of the Las Flores Pipelines. (understatement of the year candidate? 😉)
  • Sable has not persuaded the court that the DPA (Defense Production Act) Order renders compliance with Federal Consent Decree unnecessary.
  • The Federal Consent Decree requires approvals from the OSFM (Office of the State Fire Marshal), which in turn must comply with state procedures in granting such approvals.
  • Sable has not met its burden to show that the preliminary injunction should be dissolved or modified. Sable’s motion will therefore be denied.

On May 22, Judge Geck will consider whether Sable should be held in contempt for not complying with the preliminary injunction.

If you haven’t been keeping up 😉:

  • Subsequent to Judge Geck’s preliminary injunction, the Pipeline and Hazardous Materials Safety Administration (PHMSA – a simpler agency name is long overdue!) asserted that the Las Flores Pipelines constitute an interstate pipeline subject to PHMSA’s exclusive jurisdiction.
  • PHMSA issued their own approvals and an emergency special permit.
  • The PHMSA approvals are the subject of proceedings in the Ninth Circuit Court of Appeals, which has not issued a final ruling.

Undaunted, Sable reports (4/20/2026):

  • The 40 wells currently online at Platform Harmony and Platform Heritage are producing an average of 750 gross barrels of oil per day per well. Once all 74 production wells on these two platforms are online, Sable expects the average production per well to be approximately 700 gross barrels of oil per day.
  • Sable expects Platform Hondo to come online in June 2026 with an estimated fully ramped production rate of approximately 10,000 gross barrels of oil per day.

Hence, Sable production is estimated to reach ~60,000 bopd in June, which is about 6 times total California OCS production prior to the Sable restart!

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I’m attaching the complete comment letters from Sable Offshore and their main antagonist, California Attorney General Bonta, in response to PHMSA’s public notice and request for comments on Sable’s special permit application.

Summary of the California AG’s assertions:

“First, PHMSA is without authority to grant such a special permit because Lines CA-324/325 are intrastate pipelines and California regulators have sole regulatory oversight over any attempt to restart these Lines and issue state waivers. Second, California has vested interests in ensuring Lines CA-324/325 operate safely and PHMSA’s proposed special permit would dilute the higher state safety standards that were imposed on Sable and therefore it is inconsistent with pipeline safety. 49 C.F.R. § 190.341(d). Third, given the fact Line CA-324 already failed and caused a catastrophic oil spill in 2015 in Santa Barbara County, even if PHMSA had authority to issue a special permit (which it does not), a more robust environmental analysis needs to be performed. Fourth, PHMSA unlawfully invokes the Endangered Species Acts’s emergency consultation procedures and has given no indication that it will consult with the National Marine Fisheries Service, in violation of the Act. Finally, Secretary Wright’s March 13, 2026, order (“DPA
Order”) does not change anything about the propriety of the Application, because the DPA Order itself is unlawful.”

Summary of Sable’s position (screenshot):

You can sample the other public comments, some of which are quite good, by visiting the Regulations.gov docket.

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Sable Offshore photo

Sable Offshore Corp. (3/30/2026) today announced that on March 29, 2026, Sable initiated oil sales. The Santa Ynez Pipeline System was filled from Las Flores Canyon to Pentland Station at a rate in excess of 50,000 barrels of oil per day.

At the Santa Ynez Unit, Platform Harmony is currently producing approximately 22,000 gross barrels of oil per day. Additionally, the United States Department of the Interior’s Bureau of Safety and Environmental Enforcement has completed its final pre-restart inspection of Platform Heritage. Sable plans to commence production restart at Platform Heritage today at an expected total rate of over 30,000 gross barrels of oil per day. We expect Platform Hondo to be online by the end of the second quarter of 2026 at a rate in excess of 10,000 barrels of oil per day.

Sable Chairman and Chief Executive Officer, Jim Flores, said “Sable is proud to announce oil sales through the Santa Ynez Pipeline System to Chevron. In doing so, we are providing American oil from American soil through an American pipeline to an American refinery for American consumers and the United States military.

A wild month in the 50 year Santa Ynez Unit saga is ending with a flourish. The wind is at Sable’s back, but storm clouds are on the horizon.

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On Monday, Sable got a boost from Judge Wilson, U.S. District Court for the Central District of California. Judge Wilson denied a request by the California Department of Parks and Recreation (and other State agencies) to enjoin Sable Offshore from restarting or continuing the operation of oil pipeline segments withing Gaviota State Park.

Sable got another boost from Chevron, which agreed to buy 20,000 bopd from Sable for its El Segundo refinery.

Not to be denied, the California Attorney General filed the attached lawsuit in the U.S. District Court for the Northern District of California. The AG argues that US Energy Secretary Chris Wright has no authority under the Defense Production Act (DPA) to excuse Sable from compliance with state and federal laws and court orders. The lawsuit alleges that the DPA Order violates the Administrative Procedure Act and infringes on California’s sovereign power under the Tenth Amendment.

The suit also alleges that the Order violates the constitutional Separation of Powers by purporting to override not only state law and a preliminary injunction issued by the Santa Barbara Superior Court, but also a judicial Consent Decree approved by the U.S. District Court for the Central District of California that expressly acknowledged and approved the State’s role in reviewing and approving any planned restart of the onshore pipelines.

The AG asks the Court (p. 33) to issue a judicial declaration that the Wright Order is unconstitutional and/or unlawful because it violates the APA and the U.S. Constitution.

Read the Court filing for full details, and stay tuned. No doubt there will be more swings in momentum going forward.

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Add the unprecedented events of the last two weeks to the long and troubled history of the Santa Ynez Unit dating back to the Offshore Storage & Treatment facility days. There are no parallels in the history of the US OCS program.

To date in March:

3/3/2026: The Dept. of Justice issues an opinion asserting that, under the Defense Production Act of 1950 (DPA), an order issued by the President or his delegee would preempt California laws currently impeding Sable from resuming production and operating the associated pipeline infrastructure.

3/13/2026: Secretary of Energy Chris Wright issues an order to Sable invoking the DPA to immediately prioritize and allocate pipeline transportation services for hydrocarbons from the SYU through the Santa Ynez Pipeline System (SYPS).

3/14/2026: A letter from California Parks and Recreation demands that Sable remove all four miles of its pipeline from Gaviota State Park.

3/14/2026: Sable resumes the transportation of Santa Ynez Unit oil through the SYPS from Las Flores Canyon (LFC) to Pentland Station. Prior to resuming hydrocarbon transportation from LFC to Sable’s sales point at Pentland Station, Sable had approximately 540,000 barrels of processed crude oil in storage at LFC, representing more than the line fill volume for the SYPS between LFC and Pentland Station.

3/16/2026: Sable resumes oil production at anticipated rate of 50,000 bopd and expects first sales by April 1, 2026. Production ramp-up is anticipated to proceed with full production resumption at Platforms Harmony and Heritage this month and Platform Hondo in June 2026

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This follows the directive from Energy Secretary Chris Wright on Friday.

However, quoting Nick Welsh of the Santa Barbara Independent: “With Sable Offshore, one thing’s for certain; there’s always more to come.”

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(Bloomberg) — The Trump administration on Friday took action to clear the way for oil production off the California coast in a bid to ease the global fuel pressures created by the war with Iran.

The announcement by Energy Secretary Chris Wright follows an executive order signed by President Donald Trump on Friday and directs Sable Offshore Corp., a Houston-based company, to begin restoring operations for the Santa Ynez Unit and Santa Ynez Pipeline System in California.

What about Judge Geck’s injunction and the case before the 9th Circuit? How are they affected by the EO and DOJ opinion?

Perhaps Four World Capital Management wasn’t crazy after all.

More Santa Ynez Unit posts.

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