California Coastal Commission’s $18 million fine over oil pipeline

April 11, 2025

By KAREN VELIE

The California Coastal Commission on Thursday voted to fine an oil company $18 million for refusing to stop work on a pipeline in Santa Barbara County that ruptured in 2015 spilling more than 123,000 gallons of crude oil into the ocean.

A year ago, Sable purchased the pipeline, three offshore platforms and a processing facility and began repairs on the corroded pipeline. The pipeline and the offshore platforms have been shutdown since the spill.

California Coastal Commission staff then order Sable to stop making unpermitted repairs. The oil company responded by filing a lawsuit against the commission in February for unlawfully attempting to stop their repair and maintenance work.

The commission then set hearings for April 10 to discuss the alleged violations.

“Importantly, most of the activities undertaken at locations onshore, along the pipelines, and which Sable has refused to suspend, have been carried out in direct violation of several notice of violation and notice of intent letters, and in direct violation of commission staff warnings and even a formal cease and desist order,” according to the commission’s agenda.

Sable’s legal staff argued the repairs are authorized through a permit garnered in the 1980s.

Multiple speakers, including a large number of junior high school students, spoke against repairing the pipeline noting the damage to the environment caused by the 2015 Refugio oil spill.

After discussions, the Coastal Commission voted on April 10 to fine Sable $18 million, which it will lower to $15 million if the oil company stops repairs and applies to the commission for a coastal development permit.

Following the meeting, a Sable representative said the company is conducting routine pipeline repair and maintenance, which is allowed under permits issued by Santa Barbara County. The company contends the commission does not have the legal authority to override the county issued permit.

Late last month, in an similar case, a Second Circuit Court of Appeals ruled the California Coastal Commission overstepped its authority when it attempted to ban off-road vehicle usage at the Oceano Dunes. The court found that the commission did not have the authority to override a permit from San Luis Obispo County.

In the case of Sable, the Santa Barbara County Board of Supervisors voted 2-2 in February regarding transferring the permit to Sable, with one supervisor abstaining because the pipeline runs through their property.

During the past several years, the Coastal Commission has lost multiple lawsuits for overstepped its authority. As a result, state legislators and Gov. Gavin Newsom are discussing limiting the commission’s authority.