Sable Offshore faces court setback in California Coastal Commission case

Sable Offshore Corp. (NYSE: SOC) disclosed that a Santa Barbara Superior Court issued a tentative ruling on October 14 that would deny the company's claims against the California Coastal Commission.

The ruling stems from Sable's lawsuit against the Coastal Commission for damages related to cease and desist orders issued during the company's anomaly repair program on the Las Flores Pipeline System. Sable is seeking declaratory relief and inverse condemnation claims exceeding approximately $347 million.

The company stated the court ruling would not affect the resumption of petroleum transportation through the Las Flores Pipeline System or oil and gas production from the federal Santa Ynez Unit. Sable indicated it intends to appeal the ruling to the California Court of Appeal if adopted following a hearing scheduled for October 15.

The company completed its anomaly repair program and hydrotesting of the Las Flores Pipeline System in May 2025 in accordance with a Federal Consent Decree. Since restarting production in May 2025, oil has been transported via pipeline to storage tanks at Sable's Las Flores Canyon processing facility, where it remains stored pending resumed transportation through the pipeline system.

"Although the tentative ruling is disappointing, it has no impact on Sable's business strategy of either resuming petroleum transportation through the Las Flores Pipeline System or selling its Santa Ynez Unit production through an OS&T," said Jim Flores, Chairman and CEO.

Sable is considering an accelerated Offshore Storage & Treating Vessel strategy, which was previously used to process Santa Ynez Unit production from 1981 to 1994, during which time the unit produced over 160 million barrels of oil equivalent. The company believes this strategy would allow it to refinance its existing term loan.

The Santa Ynez Unit assets had been shut down since June 2015 when the onshore pipeline transporting hydrocarbons ceased operations.

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