Trump Moves to Restart Offshore Oil Production in California Now

UPDATE: The Department of Justice has just issued a critical legal opinion allowing President Donald Trump to potentially override state regulations and restart oil production at the Santa Ynez Unit in Santa Barbara County. This urgent move could pave the way for Sable Offshore to resume operations, despite significant regulatory hurdles.

In a sweeping 22-page document released on October 26, 2023, Assistant Attorney General T. Elliot Gaiser claimed that the Defense Production Act empowers Trump or his Secretary of Energy to approve Sable’s plans, effectively sidelining state authorities and a federal decree from 2020 that vested control with the Office of the State Fire Marshal.

This development comes as Sable has accused the state of obstructing its efforts to restart a pipeline that suffered a major leak in 2015, releasing 142,000 gallons of oil along the Gaviota Coast. The company argues that state officials have unreasonably withheld necessary approvals, complicating its path to production.

Gaiser’s opinion suggests that no emergency need exist for the invocation of the Defense Production Act, stating that federal authority could supersede state regulations. He noted that anyone acting under this executive order would be immune from liability, even for any criminal conduct. The implications of this opinion could significantly alter the regulatory landscape for offshore oil drilling in California.

The stock market reacted sharply, showing a notable increase in Sable’s stock value following the announcement. A week earlier, Judge Donna Geck upheld an injunction preventing Sable from resuming production, requiring the company to secure necessary permits from state agencies first.

Sable contends that the federal pipeline safety administration has already preempted the Fire Marshal’s authority, a claim contested by both the state Attorney General and the Fire Marshal’s office. The Fire Marshal’s spokesperson confirmed they are reviewing the Department of Justice’s opinion amid ongoing regulatory battles.

Linda Krop, chief counsel for the Environmental Defense Center, expressed deep concern about the ramifications of the federal opinion. “The stakes are huge,” she stated, emphasizing that this could allow federal authorities to bypass critical environmental protections.

Sable needs an easement from the State Parks Department to repair a section of pipeline running through a state park. State Parks has requested more information from Sable before making a decision, raising further questions about jurisdiction.

If this escalates into a major showdown between state and federal authorities, California Attorney General Rob Bonta is likely to play a crucial role. Bonta has yet to issue a statement but has been in consultations regarding the matter.

State Assemblymember Gregg Hart warned that the situation is fluid, stating, “Nothing happens fast.” He anticipates a swift state response to protect California’s coastal environment from what he describes as an illegal move by the Trump administration.

State Senator Monique Limón criticized the Department of Justice’s opinion, asserting that it represents an overreach that could have serious implications throughout California. “This administration is attempting to drill along our coastline despite bipartisan opposition,” she added.

As the situation develops, all eyes will be on the upcoming hearings scheduled for later this summer, where federal judges will address the jurisdictional conflicts surrounding Sable Offshore’s operations. The stakes are high, and the outcome could redefine offshore oil production regulations in California for years to come.