A federal judge has turned down the argument from Sable and Exxon that Santa Barbara County unlawfully “deprived” them of property by not granting permits for offshore oil production.
Last week, Chief U.S. District Judge Dolly Gee ruled in favor of Santa Barbara County and the Environmental Defense Center, leading to the dismissal of claims made by the Houston-based company.
“This judgment underscores that adherence to environmental laws and established regulatory frameworks is not arbitrary,” commented Tara Rengifo, a senior attorney at the Defense Center.
Judge Gee dismissed the complaint but allowed for some amendments, which means Sable can potentially refile aspects of their case.
She emphasized that Santa Barbara County’s policies aim to safeguard communities from oil companies that disregard legal compliance, committing to ensuring these protections are upheld.
Sable Offshore Corporation has intentions to collaborate with ExxonMobil to extract oil using its offshore platform and the Las Flores onshore pipeline—this is the same pipeline system involved in the significant Refugio oil spill back in 2015.
In February 2024, ExxonMobil sold its operations known as the Santa Ynez Unit, which includes three offshore platforms, an onshore gas processing facility, and a lengthy pipeline system, to Sable for around $625 million.
However, the deal didn’t grant Sable a license due to certain Santa Barbara County regulations requiring a thorough review of the new buyer before transferring Exxon’s license.
By December 2025, the Santa Barbara County Board of Supervisors formally rejected Sable’s request to assume Exxon’s existing permit. Despite this denial, reports indicate Sable continued its oil extraction operations.
Months before the denial, Sable and Exxon had filed a lawsuit against Santa Barbara County, alleging that the county’s refusal to transfer permits was akin to an “unlawful occupation” of their property. The local Environmental Defense Center stepped in to support the county’s stance in the legal battle.
While this represents a significant win for the county and environmental advocates, it doesn’t necessarily mark a final resolution. By dismissing some claims “with modification,” the judge has opened the door for Sable to revise and resubmit parts of the lawsuit.
“The next step is whether they get another opportunity,” Rengifo remarked. “So, do they want to take another shot at this?”
