A federal court upheld the Trump administration’s authority under the Defense Production Act to oversee operation of the Santa Ynez Pipeline on the California coast, rejecting California’s efforts to block federally mandated oil production through state-level legal barriers — though the same ruling fined Sable Offshore Corporation nearly $1.5 million for violating a federal consent decree.
U.S. District Judge Stephen Wilson of the Central District of California confirmed that Sable Offshore can continue operating the pipeline under a Trump administration emergency order and ruled that federal oversight governs the pipeline, not California state law. The ruling dismissed California’s arguments that the Defense Production Act order violated the Administrative Procedure Act, intruded on state sovereignty and breached separation-of-powers principles.
“Energy security is national security,” said Associate Attorney General Stanley Woodward. “The Department of Justice will continue unleashing American energy to support an affordable and reliable supply of energy necessary for our national and economic security.”
The Santa Ynez Unit, a network of three offshore oil platforms and an onshore pipeline off the coast of Santa Barbara County, had been shut down since 2015 following the Refugio Oil Spill, which released an estimated 450,000 gallons of crude oil and devastated 150 miles of California coastline. Sable purchased the unit from ExxonMobil in 2024 and restarted oil production in March 2026, despite an active state court injunction and before obtaining all required state permits. The operation currently produces approximately 50,000 barrels of oil per day.
The court also found, however, that Sable had violated the federal consent decree that was put in place following the 2015 spill, which requires the company to obtain approval from the California State Fire Marshal before restarting the pipeline. The judge fined Sable nearly $1.5 million for that violation.
California and environmental groups, including the Center for Biological Diversity and the Environmental Defense Center, have vigorously opposed the restart, arguing it bypasses legally required environmental review and state safety approvals and puts the California coast at risk of another catastrophic spill. They have characterized the Trump administration’s Defense Production Act order as an unprecedented and unlawful attempt to override state law.
The ruling is the latest development in a long-running and multi-front legal battle between Sable, the federal government, California state agencies and environmental groups. Additional litigation remains pending in both state and federal courts.