California gas suffers setback as judge slaps down – Business News
A federal judge dismissed Sable and Exxon’s claims that Santa Barbara County illegally “took” their property by refusing to subject permits for offshore oil manufacturing.
Chief US District Judge Dolly Gee final week sided with Santa Barbara County and the Environmental Defense Center, granting their motions to dismiss the Houston-based company’s claims.
“This ruling reinforces that compliance with environmental laws and established regulatory processes is not optional,” stated Tara Rengifo, senior lawyer for the Defense Center, stories the Santa Barbara News-Press.
Judge Dolly Gee dismissed the claims “with leave to amend,” giving a probability to Sable to resubmit elements of their lawsuit.
“Santa Barbara County’s policies are intended to protect the community from oil operators who do not comply with the law, and we remain committed to ensuring those protections are upheld,” she instructed the information outlet.
Sable Offshore Corp. purchased the Santa Ynez Unit from ExxonMobil in 2024. Andy Johnstone for CA Post
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The Sable Offshore Corp. together with ExxonMobil needs to pump oil utilizing its offshore platforms and the Las Flores onshore pipeline –– the very same pipeline system that was chargeable for the huge Refugio Oil Spill in 2015.
In February 2024, ExxonMobil bought the complete operation — collectively recognized as the Santa Ynez Unit, which incorporates the three offshore drilling platforms, the onshore gas processing plants, and the 125-mile pipeline system — to Sable Offshore Corp. for round $625 million, the Courthourse News reported.
But the deal didn’t get Sable the working permits as a result of of particular legal guidelines by Santa Barbara County that requires a full review of the new purchaser’s company earlier than approving the switch of the working permits from Exxon to Sable.
In December 2025, the Santa Barbara County Board of Supervisors formally denied Sable’s request to take over Exxon’s present permits. Despite the rejection, Sable continued to pump oil, in accordance with Courthouse News.
Sable Offshore’s Las Flores Canyon (LFC) facility has continued to pump oil regardless of allow denials. Andy Johnstone for CA Post
Sable and Exxon had sued Santa Barbara County six months previous to the denial, claiming that the county’s refusal at hand over the permits amounted to an “illegal taking” of their property. The Environmental Defense Center (EDC), a native environmental advocacy group, additionally stepped into the lawsuit to defend the county’s choice.
While that is a main win for the county and environmentalists, it isn’t essentially absolutely the finish of the street. The judge dismissed some of the claims “with leave to amend,” giving a probability to Sable to rewrite, repair, and resubmit elements of their lawsuit.
“The next step is, do they get another chance,” Rengifo instructed the News-Press. “And do they get a second bite at the apple?”
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