A federal judge has allowed an offshore oil pipeline near Santa Barbara to continue operating, ruling that a presidential order under the Defense Production Act pre-empts conflicting state law. The system — shut since a 2015 spill and reopened after a federal directive — will now be overseen by federal authorities. The court also fined Sable Offshore Corporation $1.5 million for breaching a consent decree. California officials say they will pursue additional legal options.
Federal Judge Allows Santa Barbara Offshore Pipeline To Keep Operating, Fines Operator $1.5M
Sable's Santa Ynez unit in Santa Barbara, in June.Photograph: Bloomberg/Getty Images
A federal judge has ruled that an offshore oil pipeline near Santa Barbara may remain in operation, rejecting legal challenges from California regulators and environmental groups this week.
The pipeline system resumed activity earlier this year for the first time since 2015 after former President Donald Trump directed Sable Offshore Corporation to reopen it, citing U.S. energy needs amid tensions in the Middle East. The facility had been shut after a 2015 rupture that caused one of California's worst oil spills; its return to service was expected to be governed by a federal consent decree.
For months, the State of California sought to block Sable from moving oil through the line, calling the company's actions an "egregious trespass on public land" that would cause irreparable environmental harm. The federal government invoked the Defense Production Act (DPA), arguing that emergency authority was necessary to address alleged supply risks, and the company said that federal direction superseded state regulatory orders.
This week, U.S. District Judge Stephen Wilson concluded the pipelines may remain in use and shifted oversight to federal authorities. In his ruling, he wrote that the DPA order "does, as a matter of law, pre-empt the enforcement of any state law that conflicts with Sable's ability to operate the onshore pipeline, including the trespass claim."
"Finally, as the court has now discussed, the DPA order does, as a matter of law, pre-empt the enforcement of any state law that conflicts with Sable's ability to operate the onshore pipeline, including the trespass claim," — Judge Stephen Wilson
Judge Wilson also fined Sable $1.5 million for violating the consent decree by operating without required state authorization or prior court approval.
Sable purchased the pipeline from ExxonMobil in 2024 and had spent more than a year seeking to restart offshore production. In March, the administration directed Sable under the DPA to "restore operation," citing "supply disruption risks" it attributed to California policies. U.S. Energy Secretary Chris Wright said the move would strengthen U.S. oil supplies and restore a system he described as "vital to our national security and defense."
"The Trump administration remains committed to putting all Americans and their energy security first," said Energy Secretary Chris Wright. "Unfortunately, some state leaders have not adhered to those same principles, with potentially disastrous consequences not just for their residents, but also our national security."
California Governor Gavin Newsom criticized the decision, saying international developments had pushed up gas prices and accusing the administration of exploiting the crisis to benefit oil-industry interests. A spokesperson for the California Department of Justice said the state is "reviewing all of our legal options" and pledged to continue challenging what it called federal interference with state authority to protect the environment and public health.
The dispute has been progressing through the courts for several months and is likely to prompt further legal battles as state and federal officials press competing claims over environmental protection, state sovereignty and national energy priorities.
Help us improve.
