Trump’s New Move Could Restart Offshore Oil Production in California

BREAKING: The Department of Justice has just issued a sweeping legal opinion that could allow Sable Offshore to restart offshore oil production in Santa Barbara County, bypassing state regulations. This urgent development comes as tensions rise over environmental protections and state authority.

UPDATE: In a 22-page opinion released on Thursday, T. Elliot Gaiser, Assistant Attorney General, asserts that the Defense Production Act empowers President Donald Trump or his Secretary of Energy to approve Sable’s plans at the Santa Ynez Unit. This move preempts regulatory oversight from numerous state agencies, including a 2020 federal decree granting the Office of the State Fire Marshal final say on the controversial pipeline restart.

Sable Offshore claims that the State Fire Marshal and other state entities have stalled its efforts to resume production, which could tap into what Gaiser describes as the “largest known offshore oil field in the United States.” The company argues that the Fire Marshal has unreasonably withheld approvals necessary to restart a pipeline that suffered a major leak in 2015, releasing 142,000 gallons of oil along the scenic Gaviota Coast.

Gaiser’s opinion, which claims the president’s executive team can invoke the Defense Production Act without a stated emergency, raises significant concerns. He stated that no emergency need exist for the Act to be enacted, merely the potential for one if state regulations are not overridden. According to Gaiser, federal authority would supersede any conflicting state laws, effectively granting immunity to those acting under the Act, even from potential criminal conduct.

The stock market reacted sharply to this news, showing a marked increase in Sable’s stock value. However, just a week prior, Judge Donna Geck of the Santa Barbara County Superior Court upheld an injunction preventing Sable from resuming operations until it secures all necessary state permits.

Sable contends that jurisdiction over pipeline safety now lies with the federal Pipeline and Hazardous Materials Safety Administration, arguing that the Fire Marshal’s authority has been undermined. The state Attorney General and Fire Marshal continue to contest this federal preemption, and the matter is set to be resolved by a panel of federal judges later this summer.

In the meantime, the Fire Marshal’s office is currently reviewing the Department of Justice’s opinion. Environmental advocates are alarmed. Linda Krop, chief counsel for the Environmental Defense Center, expressed grave concerns, stating, “The stakes are huge.” She warned that this could enable the federal government to bypass crucial environmental and health protections, asserting that the federal government is poised to dictate actions on state-owned property.

Sable requires an easement from the State Parks Department to repair a four-mile stretch of pipeline running through a state park. State Parks has requested additional information from Sable before making a decision.

California’s Attorney General Rob Bonta is expected to play a critical role in any legal challenges that arise from this jurisdictional clash. Although he has been consulted, he has yet to release any statements. Meanwhile, State Assemblymember Gregg Hart has indicated that he expects the state to respond vigorously to this “illegal move” from the Trump administration.

State Senator Monique Limón has criticized the DOJ’s opinion as an overreach, stating, “This latest opinion is yet another attempt for this administration to drill along our coastline despite bipartisan opposition.” She added that California residents are acutely aware of the consequences of oil drilling, emphasizing the state’s commitment to safeguarding its coastal environment.

With the situation developing rapidly, all eyes are on the federal government’s next steps and the potential for escalating legal battles that could shape the future of offshore oil production in California. Stay tuned for updates as this story unfolds.