A group of environmental organizations is opposing a federal order that allows a Texas oil company, Sable Offshore Corp., to operate in violation of state law on the Central Coast of California. The Trump administration order is being used by the company to facilitate the transportation of oil through a pipeline that failed in 2015, causing a significant oil spill at Refugio State Beach.
An amicus brief was filed in the Ninth Circuit Court of Appeals by the Environmental Defense Center (EDC), the Center for Biological Diversity, Earthjustice, and their nonprofit clients. This brief supports the State of California’s lawsuit, which challenges the federal order. The state’s legal action has garnered broad support, with members of Congress, experts, business leaders, and 20 other states also filing amicus briefs in favor of California’s position.
In March, U.S. Energy Secretary Chris Wright issued the order under the Defense Production Act (DPA), directing Sable Offshore Corp. to prioritize contracts or orders for oil transportation from the Santa Ynez Unit offshore Santa Barbara. This action was allegedly taken in the interest of national defense. However, the Secretary’s order did not identify any existing contracts or orders for services, nor did it specify a national defense need for Sable’s oil. The order was issued despite ongoing court injunctions that prevented the restart of the company’s defective pipeline and despite Sable’s failure to secure basic approvals required for operation under state law. The United States has taken the position that the Secretary’s action is immune from judicial review.
Maggie Hall, EDC Deputy Chief Counsel, stated that the situation represents an unprecedented instance where the federal government is "brazenly undermining laws, court orders, and even state property rights for the benefit of one oil company.” Hall warned that if Secretary Wright’s order is upheld, federal officials could override laws in any state to benefit various industries, including oil drillers, data centers, or mining interests, under claims of national security. She further noted that allowing Sable to operate a failed oil pipeline outside of state laws and judicial oversight puts the entire Central Coast region at risk of another disaster.
The State of California’s lawsuit aims to have the Trump administration order declared unlawful. Such a declaration would prevent Sable from relying on the order to operate its facilities on California’s Gaviota Coast. These facilities include three aging offshore platforms, onshore processing facilities, and the same pipeline that experienced severe corrosion, leading to one of the worst oil spills in state history at Refugio State Beach in 2015.
The environmental groups’ brief highlights that the DPA grants the Executive Branch narrow authority to require businesses to reprioritize contractual arrangements or reallocate services or resources in a national security emergency. The brief argues that the DPA does not empower the government to unilaterally exempt a business like Sable from complying with existing laws or court orders. It also addresses the sweeping implications of the Trump administration’s opposing view and challenges its claims that the order is unreviewable.
Prior to Secretary Wright’s order, Sable’s project had been stalled. A lawsuit filed by EDC and the Center for Biological Diversity had resulted in an injunction that prevented the restart of the pipeline. The company had also faced felony criminal charges and civil enforcement actions, and it was met with fierce opposition across the state. Critically, Sable lacked key approvals from state agencies, including an easement necessary to operate the pipeline through Gaviota State Park.
Following the issuance of the federal order, Sable immediately began pumping oil through the pipeline. This action disregarded the existing injunction, the state’s property rights, and other environmental and safety laws and requirements.
In this case, EDC is representing Get Oil Out!, Santa Barbara County Action Network, Sierra Club, and Santa Barbara Channelkeeper. The Center for Biological Diversity is representing the Wishtoyo Foundation. Earthjustice is also representing both EDC and the Center for Biological Diversity.
The Environmental Defense Center works to defend nature and advance environmental justice on California’s Central Coast through advocacy and legal action. Since 1977, EDC has represented over 140 nonprofit, community-based organizations to protect the Central Coast and the Earth’s climate. The Center for Biological Diversity is a national, nonprofit conservation organization dedicated to protecting endangered species and wild places. Earthjustice, the nation’s largest environmental law organization, uses legal power to protect public health, preserve natural environments and wildlife, advance clean energy, and combat climate change.