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Judge Stephen Wilson Rules Sable Offshore Corporation Can Continue Operating Contested California Oil Pipeline

Judge Stephen Wilson ruled this week that Sable Offshore Corporation may continue to operate its oil pipeline system off the coast of Santa Barbara, California. The decision confirms that the Trump administration's use of the Defense Production Act to order the company to resume operations supersedes state regulations and environmental group opposition. By invoking the Defense Production Act, the administration announced a national energy emergency to address supply disruption risks caused by California's policies. Energy Secretary Chris Wright argued that the restart is vital for national security and domestic production. While California officials, including Governor Gavin Newsom, criticized the move as a way to favor oil industry friends and potentially harm the environment, the court found that the federal order provides broad immunity from conflicting state laws. Judge Stephen Wilson also fined Sable Offshore Corporation $1.5 million for violating a consent decree by starting operations without state approval. The ruling shifts regulatory oversight from the state to the federal level, specifically replacing the California Office of the State Fire Marshal with the Pipeline and Hazardous Materials Safety Administration.

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