District court denies California parks department bid to block Sable Offshore pipeline

Sable Offshore

Sable Offshore

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- A U.S. District Court on Thursday denied the California Department of Parks and Recreation's bid to stop oil producer Sable Offshore Corp SOC.N from moving oil on a long-disputed pipeline linked to the Santa Ynez offshore platform.

The denial marks a setback for California's efforts to stop the Santa Ynez project, which Sable restarted in March after intervention from the federal government. For Sable, it marks a major win and sent the company's shares up nearly 12%.

* The Department of Parks and Recreation had sought preliminary injunctive relief, citing irreparable harm to it from the use of a section of Sable's pipeline under the Gaviota State Park.

* The U.S. District Court for the Central District of California said the department "manifestly failed to demonstrate that it will suffer irreparable harm in the absence of preliminary injunctive relief."

* Parks and Recreation and the California governor's office did not immediately respond to requests for comment.

* Several other legal challenges from various California state bodies, including a lawsuit against the U.S. Department of Energy, continue to progress. Most are at preliminary stages, the district court noted in its order on Thursday.