UPDATE 1-District court denies California parks department bid to stop Sable Offshore pipeline

Sable Offshore

Sable Offshore

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Adds statement from California Parks department

- 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 the federal government's intervention. For Sable, it marks a major win, sending 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."

  • California State Parks is disappointed by the court decision and will continue to challenge Sable's "egregious trespass on public land", a spokesperson said in a statement.

  • 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.