California Coastal Commission hits Texas oil company with $18M fine

By Camille von Kaenel | 04/14/2025 06:57 AM EDT

The commission voted Thursday to fine a Texas-based oil company $18 million for ignoring its orders to stop work on oil pipelines on the Santa Barbara coast.

FILE - In this May 21, 2015, file photo, workers prepare an oil containment boom at Refugio State Beach, north of Goleta, Calif. The shutdown of a pipeline that spilled up to 101,000 gallons of crude on the Santa Barbara coast forced Exxon Mobil Corp. to halt operations at three offshore platforms because it couldn't deliver oil to refineries, the company said Tuesday, June 23. (AP Photo/Jae C. Hong, File)

Sable Offshore has been making repairs to a pipeline that contributed to a massive 2015 oil spill with the intent of restarting oil production off the coast of Santa Barbara. AP

The California Coastal Commission voted Thursday to fine a Texas-based oil company up to $18 million for what the agency said were unpermitted repairs to oil pipelines along the Santa Barbara coast.

What happened: The Coastal Commission also voted to issue its third cease-and-desist order to the company, Sable Offshore Corp., which started repairs last fall to a dormant onshore pipeline with the intent of restarting offshore oil production. Finally, the commission voted to require Sable restore the environment around the pipeline to remedy environmental impacts. The fine would go down to $14 million if Sable complied.

Why this matters: The case was a test of the California Coastal Commission’s clout at a time when it has been targeted by Elon Musk and other top Republicans in Washington intent on dismantling California’s environmental regulations — as well as Democratic Gov. Gavin Newsom, who has sided with Musk in his spat with the agency and issued two executive orders in January limiting its authority over rebuilding after the Los Angeles fires.

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The coastal agency chose to flex its regulatory muscle Thursday, casting aside arguments by the company and Santa Barbara County that the repairs were indeed allowed under past permits.

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