By Mike Harris Wednesday, December 31st, 2025

A federal appeals court on Dec. 31 denied a request by environmental groups to stay Texas-based Sable Offshore’s plans to restart oil production in Santa Barbara County.

The U.S. Ninth Circuit Court of Appeals in San Francisco turned down the request in a brief opinion.

But the environmental groups’ lawsuit is still to be litigated, with the court ordering opening briefs on Jan. 26, 2026.

The groups sued the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration, which on Dec. 22 approved Sable’s plan to restart the Santa Ynez Unit and issued emergency permits.

“In issuing the Approval and Emergency Special Permit, PHMSA bypassed the required public notice, opportunity for public participation, statement of reasons for its decisions, and other conditions generally required for pipeline safety regulation waivers under the federal Pipeline Safety Act,” the groups, which include the Environmental Defense Center, the Sierra Club and the Center for Biological Diversity, argued in their suit.

The Pipeline and Hazardous Materials Safety Administration countered that the emergency permits were granted in response to a national energy emergency declared by President Donald Trump in January 2025.

The Santa Ynez Unit includes three oil and gas platforms in federal waters off Santa Barbara County’s coast, offshore pipelines, the onshore Las Flores Pipeline System and processing facilities.

The unit has been shut down since one of its pipelines ruptured on May 19, 2015, spilling more than 2,900 barrels of heavy crude oil onto private property, Refugio State Beach, and into the Pacific Ocean.

Houston-based Sable has faced several roadblocks to restarting the unit, including the Santa Barbara County Board of Supervisors’ decision in November to reject the transfer of operational permits to Sable. 

Sable was also hit with an $18 million fine levied by the California Coastal Commission in April.

The commission alleged that Sable had failed to obtain required permits and reviews for repairs it was making to the unit.

The agency ordered Sable for the third time to cease development of the pipelines.

Shares of Sable tumbled 30% on Nov. 3 to an all-time low after the company said it was trying to raise $225 million and extend a loan with Exxon Mobil as it looked for a way to reopen the unit.

The company’s shares fell roughly $3.20 to $7.26.

Sable bought the unit from ExxonMobil in 2024.

Sable’s stock closed Dec. 31 at $9.02.