Sable Offshore Corp said it had filed a request before the California Office of the State Fire Marshal (OSFM) to restart the Las Flores Pipeline System, warning it would opt to divert oil flows outside the state if delays continue.
The pipeline system is part of the Santa Ynez Unit (SYU) oil and gas production project, which has three production platforms in federal waters offshore Santa Barbara and a processing facility in Las Flores Canyon.
SYU ceased flows 2015 after an oil spill that, according to the California Coastal Commission (CCC), released 123,000 gallons of oil and caused environmental damage to 150 miles of coastline. The project was then owned by Plains Pipeline LP, which sold it to Exxon Mobil Corp 2022. Sable acquired SYU from ExxonMobil February 2024.
Sable said in an online statement this week it had “satisfied all operational conditions to resume petroleum transportation through the onshore pipeline”.
“Among these satisfied conditions are anomaly repairs, safety valve installations, control room enhancements and the production of all supporting documentation and analyses”, Sable said.
“Continued delays related to the onshore pipeline will prompt Sable to fully pivot back to a leased OS&T strategy, which was utilized to process SYU production in federal waters from 1981-1994”, it warned.
“The onshore pipeline provides immediate economic relief to California residents and will play a large role in stabilizing local refineries”, Sable said.
“In the second option, the company would have the freedom to market its production outside of the state of California.
“Additionally, Sable would plan to aggressively pursue all legal remedies. Sable will continue to pursue both paths in parallel.
“In the OS&T option, the company expects to execute an OS&T lease contract by year-end 2025 for delivery in Q3 2026. Sable would then expect to begin sales from all SYU platforms during Q4 2026 with expected comprehensive oil production rates of over 50,000 barrels of oil per day utilizing the OS&T within the SYU federal leases”.
In November 2024 the CCC issued a Cease and Desist Order (CDO) against Sable’s activities to reactivate the pipeline system, citing “unpermitted development”. The CCC argued Sable was conducting onshore pipeline works without having undergone the commission’s authorization process.
In March 2025 Sable announced a suit against the CCC before the Superior Court in Santa Barbara County asking 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”.
Sable said at the time it had obtained consent from the county government that supports the company’s view that repair works are covered by the pipeline system’s existing permits and do not need a new or separate Coastal Act authorization.
In April 2025 the CCC issued a second CDO, ordered Sable to restore environmental damages from the allegedly unauthorized works and imposed administrative penalties. The CCC insisted the Consent Decree between Sable and the local government does not amount to a permit and does not exempt Sable from state and local laws and permits.
In May 2025 Sable reported the resumption of production at SYU’s Harmony platform and the completion of onshore pipeline repairs.
Federal Support
In June 2025 the federal Bureau of Safety and Environmental Enforcement (BSEE) said it continues to work with Sable to resume production at the Heritage platform, which would see SYU produce about 20,000 barrels of oil per day including around 10,000 bpd from Harmony.
“Interior anticipates all three platforms in the SYU to be online by the end of 2025, bringing a very successful completion to what has been 10 years of no oil production in the Pacific to essentially full production in just a matter of months, which is an excellent testament to President Trump and Secretary Burgum’s drive towards Unleashing American Energy”, the Interior Department sub-agency said in a statement on its website.
“Approximately 190 million barrels of recoverable oil reserves are estimated to remain within this area [SYU], which accounts for nearly 80 percent of residual Pacific reserves and about three percent of the total production potential for the U.S.”, the BSEE said.
To contact the author, email jov.onsat@rigzone.com
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