Investing.com -- Shares of Sable Offshore Corp (NYSE: SOC ) tumbled 14% after the California Coastal Commission was granted a preliminary injunction against the company’s pipeline repair and maintenance activities within the coastal zone in unincorporated Santa Barbara County. The court’s decision, which aligns with the Coastal Act’s strict regulations on coastal development, has raised concerns about potential project delays and additional costs for Sable Offshore.
The legal proceedings stem from allegations that Sable Offshore Corp did not obtain the necessary coastal development permits (CDPs) for their ongoing repair and maintenance work on the Las Flores Pipelines. Despite Sable’s claims that the work was authorized under existing permits from the County of Santa Barbara, the court found a prima facie case for the Coastal Commission, indicating that the activities constituted a violation of the Coastal Act.
The injunction stops Sable from continuing any development associated with the return to service of the Las Flores Pipelines CA-324 and CA-325 unless they secure a new, operative CDP or other form of Coastal Act authorization. The company had resumed repair and maintenance activities earlier in February 2025, following confirmation from the County that the activities were authorized under existing permits.
The court’s ruling highlights the ongoing tension between regulatory compliance and operational progress within the energy sector. Sable Offshore Corp’s stock movement reflects investor concerns over the potential impact of regulatory hurdles on the company’s ability to complete essential maintenance work and resume operations.
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