California has filed a lawsuit against the Trump administration, challenging its assertion of federal authority over two oil pipelines within the state and its decision to allow their owner, Sable Offshore, to restart operations.
The legal action marks the latest development in a long-running dispute between Houston-based Sable Offshore and California officials over offshore drilling near Santa Barbara. Operations were halted after a 2015 spill released more than 100,000 gallons of crude oil into the ocean and along nearby beaches.
Following the announcement, shares in Sable Offshore fell nearly 16%, closing at $10.43 on the New York Stock Exchange.
The case adds to a series of confrontations between US President Donald Trump, who has prioritised expanding domestic fossil fuel production, and California Governor Gavin Newsom, a vocal advocate of aggressive climate action and a prominent critic of the administration.
Speaking at a press conference on a Los Angeles beach, California Attorney General Rob Bonta said the administration had acted unlawfully by reclassifying the Las Flores pipelines as “interstate” last month at Sable’s request, despite the pipelines running entirely between two California counties. The reclassification enabled the Pipeline and Hazardous Materials Safety Administration to issue an emergency permit allowing operations to resume.
“Sable said ‘jump,’ and Trump said ‘how high?’” Bonta said, adding that the move was “a pretext for usurping state oversight”.
In a statement, the federal regulator said the pipelines had been treated as interstate infrastructure for decades and that restoring federal jurisdiction was appropriate. It argued that restarting the Las Flores pipeline would help deliver “much-needed American energy” to a state with the highest petrol prices in the country.
Sable said it sought the emergency permit on the basis of a national energy emergency declared by President Trump when he took office. The company did not respond to requests for comment.
The petition will be filed with the US Court of Appeals for the Ninth Circuit, according to the California Attorney General’s office.
