Judge Rules Federal Order Pre-empts California Pipeline Ban

Judge Stephen Wilson ruled that Sable Offshore Corporation may continue operating an oil pipeline off the coast of Santa Barbara, California, determining that a federal order pre-empts conflicting state laws. The pipeline had been closed since a 2015 burst caused a major oil spill, but resumed operations earlier this year after President Donald Trump invoked the Defense Production Act to mitigate energy supply risks linked to the war in Iran.

While the court upheld the pipeline's operation, Judge Wilson fined Sable $1.5 million for violating a federal consent decree without authorization. U.S. Energy Secretary Chris Wright defended the move, stating the system is vital to national security. Conversely, Governor Gavin Newsom accused the administration of using a self-created crisis to benefit the oil industry and threaten the environment.

The California Department of Justice, which challenged the operation as a trespass on public land, is currently reviewing its legal options. The ruling establishes that the Defense Production Act order legally overrides state trespass claims and other conflicting regulations regarding the onshore pipeline.