Sable Offshore: Reading The Tea Leaves
The Company Sues The CCC While Repairs Continue
Just when I thought we were done with the clowns at the CCC, and I could focus on writing my next piece, they decided that they wanted to go the distance. I’ll make sure to write earnings updates next week on Navios NMM 0.00%↑, offshore oil services stocks like Borr Drilling BORR 0.00%↑, along with an update one of my most recent deep dives on VALE 0.00%↑. I have been getting enough inbound on Sable Offshore SOC 0.00%↑ over the last couple days with the lawsuit against the CCC that I know that is what some of you guys wanted to hear about anyway.
Trading was halted on Wednesday morning due to the litigation, and the company filed an 8-K as well. Shares have held up pretty well with the news, but I got to spend the last couple days sifting through the legalese in the company’s lawsuit against the CCC with a fine tooth comb. I think all the brain damage with Sable over the last six months will be worth the potential pot of black gold at the end of the rainbow, but I don’t think we will have to wait much longer to find out at this point. The most recent 8-K is a good place to start, but I have included links to important documents from the last week are worth a read as well.
On February 16, 2025, the California Coastal Commission (“CCC”) sent Sable Offshore Corp. (“Sable”) a “Notice Prior to Issuance of Executive Director Cease and Desist Order” related to Sable’s ongoing anomaly repair work. On February 17, 2025, Sable replied to the CCC with a letter, attached in Exhibit 99.1 herein, stating that the “Coastal Act does not authorize the issuance of an EDCDO under the present circumstances” and that “Sable intends to proceed with the anomaly repair work authorized by the County in its February 12, 2025 letter.”
Further, on February 18, 2025, Sable Offshore Corp. filed a complaint against the CCC in the Superior Court of the State of California for the County of Santa Barbara (Case No. 25CV00974), which will be available on the Superior Court of California, County of Santa Barbara’s website and at https://sablecaliforniaenergy.com/ (the information posted on or accessible through our website is not incorporated into this 8-K). In the complaint, Sable challenges the CCC’s prior Notices of Violations and Executive Director Cease and Desist Order as procedurally improper and asserts that CCC lacks authority to prohibit work authorized by existing permits. Sable seeks a declaration that the CCC's actions are unlawful, an injunction prohibiting further enforcement actions by the CCC, damages for the alleged taking of property rights, and attorneys' fees and costs. The CCC proceeded to issue an Executive Director Cease and Desist Order to Sable on February 18, 2025. Sable pipeline repair operations remain unaffected.
Important Links From The Last Week
Letter From Santa Barbara County To Sable Offshore (2/12/2025)
Letter From Santa Barbara County To The CCC (2/12/2025)
Notice From The PHMSA (signing off on the State Waiver for CA-324, 2/11/2025)
Notice From The PHMSA (signing off on the State Waiver for CA-325 A/B, 2/11/2025)
Sable Letter to the CCC (linked in 8-K, 2/17/2025)
Sable Offshore (and Pacific Pipeline Company) Lawsuit Against The CCC (filed 2/18/2025)
Where Do We Go Now?
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