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Posts Tagged ‘Santa Ynez Unit’

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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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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BOE contributor John Smith has shared (attached) his highlighted version of the 89 page California Coastal Commission staff report recommending imposition of a $15 million fine

John finds it noteworthy that the report documents that Santa Barbara County did not concur with the CCC, and that the California State Lands Commission approved the span remediation work. John thinks this raises legitimate questions as to whether the CCC is overreaching in terms of asserting permitting authority for the repair and maintenance work. 

John thinks it will be interesting to see how the Courts rule on this and expects an appeal regardless of the outcome. He points to the Court ruling against the CCC on Pismo Beach offroading case as being pertinent to the Sable-CCC dispute. (“Is the Friends of Oceano Dunes court victory a good omen for Sable?“)

In particular, note the text John has highlighted in green. These issues will likely be central to the Court deliberations.

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Santa Ynez Unit items (thanks to John Smith for the links):

Cuts in carbon capture spending coming? These are cuts that both climate activists and skeptics can support.

In a peer reviewed paper, AI (Grok-3) debunks the man-made climate crisis narrative.

Doug Burgum: Hydraulic fracturing technology is “one of the reasons why the U.S. shale revolution is a miracle. But that miracle keeps on getting better and better. It’s the thing that has literally turned around the economy.” Posted here 15 years ago: Natural Gas Bonanza – Why Aren’t We Celebrating?

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It’s starting to look that way.

The State Fire Marshal stated on February 25 — during a packed-house meeting at La Cumbre Junior High School — that he would not issue Sable authorization to restart production at the Santa Ynez Unit until all outstanding permit issues between Sable and the eight state agencies with oversight authority are resolved.

Although Sable has a good defense against the Coastal Commission’s accusations, that statement by the Fire Marshal is ominous.

More bad news for Sable: The Center for Biological Diversity suit challenging the Federal government’s extension of the 16 Santa Ynez Unit leases is not going well. The government requested a voluntary remand of BSEE’s 2023 approval because “BSEE plans to reconsider its decision in light of Plaintiffs’ claims and conduct additional analysis, as warranted, under OCSLA and NEPA.”

In the attached decision, shared by John Smith, the judge denied the Federal government’s request. This does not bode well for the Federal government’s case going forward.

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Attached is a recent Sable Offshore presentation for investors. Notably, Sable is now projecting to resume Santa Ynez Unit production in Q2 2025 (see slide below). John Smith thinks this is unrealistic, and I have to agree.

It’s tough for an offshore producer to succeed in California, but Sable is making a strong effort. Exxon must agree, because they have extended Sable’s first production deadline to 3/1/2026, which reflects a more plausible Q1 2026 restart. Additional extensions seem likely if necessary given that Exxon’s other options aren’t very attractive.

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Santa Barbara resident Julia-Louis Dreyfus fires up the crowd. Photo Credit: Ingrid Bostrom, Independent

The Santa Barbara Independent and Noozhawk have closely followed the Sable saga and provided good coverage of the “Information Meeting.” BOE contributor John Smith followed the meeting online and shares his impressions.

Independent: “What was advertised as an informational meeting with eight state agencies that oversee Sable’s operations quickly became emotionally charged when the Environmental Defense Center’s Linda Krop and resident actor Julia Louis-Dreyfus were surprisingly called onto the stage to voice their opposition to the oil project.

John Smith reports that the meeting got off to a good start before deteriorating:

Smith: “The CCC (Coastal Commission) presentation was interesting because it highlights their position and disagreement with SBC (Santa Barbara County) who determined permits were not required by Sable for maintenance and repair work.  I think the agencies did a good job in sharing information on the status of permits, which if people were objective, may have alleviated many of their major concerns.  Unfortunately, it went downhill at the end when EDC and Hollywood types were given the floor.”  

Unsurprisingly, a State Senator facilitated the ambush:

Independent: “When Senator Limón’s staff called to the stage the Environmental Defense Center’s chief counsel, Linda Krop — who hosted a star-studded press conference beforehand with state legislators, actors Julia Louis-Dreyfus and Jane Fonda, and Ventura-based Patagonia CEO Ryan Gellert, among others, outside the EDC’s headquarters — the town hall shifted gears from an info-session into a quasi-rally. Krop’s emotion-inciting words, followed by an angry, passionate speech from Louis-Dreyfus, put the room into a cacophony of cheers and jeers.

Sable supporters (workers, not movie stars) were also in the house:

Independent: “Sable Offshore management, employees, contractors, labor, and supporters showed up today in good faith to participate in a town hall meeting where only government officials were on the agenda to present,” said Steve Rusch, Sable’s vice president of environmental and governmental affairs, in a statement. “Project opponents forced the moderators to give them dedicated time to present biased information and smear the project. The opponents’ self-serving fundraiser and rally was not an appropriate use of public resources.”

Not one word was said about the working people,” a Sable employee and union member told the Independent after he walked out. “This is my home, too, and I’m going to fight, too…. Without this, we’re just unemployed.”

Interestingly, regulatory fragmentation, a topic that this blog has railed about, was mentioned by one of the Sable opponents, and I suspect the Sable supporters agree!:

Noozhawk: “One of the audience members was Ravid Raphael, who has lived in Goleta for the past 11 years. One of his concerns was that there are too many departments and that they are too fragmented.

Jane Fonda (no one would question her credibility😉) – Photo Credit: Ingrid Bostrom, Independent

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See the attached letter from Sable’s attorneys; highlights below:

  • The Commission staff appears to be asserting Commission jurisdiction over already permitted activities in order to attempt to exert influence over Sable’s planned restart of the Santa Ynez Unit oil production operations. Jurisdiction over restart activities is entirely outside of the Commission’s jurisdiction and is separately regulated by other agencies.
  • Sable’s repair and maintenance activities (anomaly repairs, safety valve installation, and span remediation) are in compliance with applicable provisions of Santa Barbara County’s Coastal Zoning Ordinance (CZO), certified Local Coastal Program (LCP), and the Coastal Act. As such, no cease and desist order is warranted – whether issued by the Executive Director or the full Coastal Commission.
  • The onshore and offshore repair and maintenance work is fully authorized by coastal development permits previously approved by Santa Barbara County and the Commission. Therefore, those activities do not require new or amended coastal development permits and are not otherwise subject to the Commission’s jurisdiction or enforcement authority.
  • Onshore anomalies: Santa Barbara County reviewed the detailed information Sable submitted with Zoning Clearance applications in 2024 and confirmed in a letter dated February 12, 2025, that the anomaly repair work is authorized by the pipelines’ existing coastal development permits and, consistent with past practice, no new or separate Coastal Act authorization is required for Sable to perform the work. Commission staff has repeatedly ignored that the County — as the applicable agency with delegated LCP authority under the Coastal Act — expressly has confirmed that the anomaly repair work was authorized by the onshore pipelines’ existing Coastal Development Permit, Final Development Plan, and Conditions of Approval.
  • Onshore safety valves: Sable was required to undertake safety valve repair and maintenance activities pursuant to state law that the Coastal Commission supported. The safety valve repair work involves the exact same type of work as pipeline anomaly repairs, and Sable completed the safety valve work only after the County confirmed in writing that no further authorization from the County was required for the safety valves.
  • Offshore span remediation: Sable’s span remediation maintenance activities were fully contemplated and authorized within the original coastal development permit approved by the Coastal Commission for the Offshore Pipelines in 1988 and the Development and Production Plan approved by the Department of the Interior. The span remediation maintenance activities involve the placement of sand-cement bags beneath certain segments of the offshore pipelines to provide additional pipeline support. The exact same support enhancement (span remediation) activities have been performed in the past on these same offshore pipelines without requiring any new Coastal Act authorizations.
  • Sable has filed a lawsuit against the Commission in Superior Court in Santa Barbara County where it has asked the Court for damages and declaratory and injunctive relief to protect its vested rights to repair, maintain and operate the Santa Ynez Unit and Las Flores Pipeline Systems.

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The Santa Barbara County Board of Supervisors tie vote on the transfer of permits from Exxon to Sable has both sides declaring victory! (And I thought I was the only one who was confused!)

Noozhawk photo

Per Noozhawk:

“During Wednesday’s meeting of the county Planning Commission, Lisa Plowman, director of Planning & Development, expressed uncertainty about the future of the permits and said the split vote meant that the board took no action.

“We are in the process of (…) determining what that actually means in the long run for Sable and the opponents,” Plowman said.”

“The county has not in recent memory had a tie vote under this section. The county is looking into what happens next.”

Sables’ take: Sable is pleased the appeals failed and the Planning Commission’s approval of the Santa Ynez Unit permit transfer to Sable stands. We look forward to continuing to work with the county to finalize the permit transfer and to safely restarting production as soon as possible.”

Environmental Defense Center’s take: “We applaud the Board of Supervisors’ decision to NOT transfer permits to Sable to operate a defective pipeline and dangerous processing facilities on our shores.”

Just when you thought this couldn’t get more complicated!😖😣

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