Sable Offshore Corp. Continues to Coordinate with California Coastal Commission on Maintenance and Repair Work in the Coastal Zone
Sable Offshore Corp. provided an update on its coordination with the California Coastal Commission (CCC) regarding maintenance work on the Las Flores Pipeline system. The CCC requested Sable to halt work in the Coastal Zone in September. Both parties are now working on an interim plan to fill open excavations to prevent environmental risks from erosion. The work is expected to take seven days once approved. The 124-mile Las Flores Pipeline system has nine parcels with exposed pipe in the Coastal Zone, while maintenance continues in non-coastal areas to achieve 'as new' condition.
Sable Offshore Corp. ha fornito un aggiornamento sulla sua coordinazione con la California Coastal Commission (CCC) riguardo ai lavori di manutenzione sul sistema della Pipeline Las Flores. La CCC ha richiesto a Sable di interrompere i lavori nella Coastal Zone nel mese di settembre. Entrambe le parti stanno ora lavorando a un piano temporaneo per riempire le escavazioni aperte e prevenire rischi ambientali derivanti dall'erosione. Si prevede che il lavoro richieda sette giorni una volta approvato. Il sistema della Pipeline Las Flores di 124 miglia ha nove sezioni con tubi esposti nella Coastal Zone, mentre i lavori di manutenzione continuano nelle aree non costiere per raggiungere una condizione 'come nuova'.
Sable Offshore Corp. proporcionó una actualización sobre su coordinación con la Comisión Costera de California (CCC) respecto a los trabajos de mantenimiento en el sistema de la tubería Las Flores. La CCC solicitó a Sable que detuviera el trabajo en la Zona Costera en septiembre. Ambas partes están trabajando ahora en un plan provisional para llenar las excavaciones abiertas y prevenir riesgos ambientales por erosión. Se espera que el trabajo tome siete días una vez aprobado. El sistema de tuberías Las Flores de 124 millas tiene nueve tramos con tuberías expuestas en la Zona Costera, mientras que el mantenimiento continúa en áreas no costeras para lograr una condición 'como nueva'.
Sable Offshore Corp.는 라스 플로레스 파이프라인 시스템의 유지 관리 작업에 관한 캘리포니아 해안 위원회(CCC)와의 협조에 대한 업데이트를 제공했습니다. CCC는 Sable에게 9월에 해안 지역에서 작업을 중단할 것을 요청했습니다. 양측은 이제 환경 위험을 방지하기 위해 열린 굴착을 채우기 위한 임시 계획을 마련하고 있습니다. 작업은 승인된 후 7일이 소요될 것으로 예상됩니다. 124마일 길이의 라스 플로레스 파이프라인 시스템은 해안 지역에 드러난 파이프가 있는 9개의 구획이 있으며, 비해안 지역에서의 유지 관리가 '최신 상태'에 도달하기 위해 계속되고 있습니다.
Sable Offshore Corp. a fourni une mise à jour sur sa coordination avec la California Coastal Commission (CCC) concernant les travaux d'entretien du système de pipeline Las Flores. La CCC a demandé à Sable d'arrêter les travaux dans la zone côtière en septembre. Les deux parties travaillent maintenant à un plan intérimaire pour remplir les excavations ouvertes afin d'éviter les risques environnementaux dus à l'érosion. Les travaux devraient prendre sept jours une fois approuvés. Le système de pipeline Las Flores de 124 miles compte neuf parcelles avec des tuyaux exposés dans la zone côtière, tandis que l'entretien se poursuit dans les zones non côtières pour atteindre un état 'comme neuf'.
Sable Offshore Corp. hat ein Update zu seiner Koordination mit der California Coastal Commission (CCC) bezüglich der Wartungsarbeiten am Las Flores Pipeline-System gegeben. Die CCC hatte Sable im September gebeten, die Arbeiten in der Küstenzone einzustellen. Beide Parteien arbeiten jetzt an einem Zwischenplan, um offene Grabungen zu füllen und Umweltrisiken durch Erosion zu vermeiden. Die Arbeiten sollen nach Genehmigung sieben Tage in Anspruch nehmen. Das 124 Meilen lange Las Flores Pipeline-System hat neun Abschnitte mit freiliegenden Rohren in der Küstenzone, während in nicht küstennahen Bereichen weiterhin Wartungsarbeiten durchgeführt werden, um einen 'wie neu'-Zustand zu erreichen.
- None.
- Operations halted by regulatory body (CCC) in Coastal Zone
- Open excavations pose environmental risks
- Maintenance work delays in Coastal Zone affecting pipeline repairs
Insights
This regulatory development highlights ongoing operational challenges for Sable Offshore in California's coastal zone. The company's pipeline maintenance work suspension and negotiations with the CCC represent a temporary operational setback. The situation reveals potential regulatory compliance risks that could impact the company's maintenance timeline and costs.
The interim work plan to fill open excavations appears to be a pragmatic short-term solution, but the broader issue of determining permitting requirements for future maintenance work remains unresolved. The 7-day timeline for filling excavations is relatively short, but delays in reaching agreement with CCC could extend this timeframe. The fact that maintenance continues outside the coastal zone suggests immediate operational impact.
The regulatory uncertainty surrounding coastal zone maintenance permissions could lead to increased compliance costs and extended project timelines, potentially affecting the company's maintenance budget and schedule for bringing the pipeline to "as new" condition.
Today, Sable Offshore Corp. (“Sable”) provided an update on its ongoing coordination with the California Coastal Commission (“CCC” or “Commission”) related to Sable’s maintenance and repair work along the existing Pacific Pipeline Company Las Flores Pipelines CA-324 and CA-325. The following statement was issued by Steve Rusch, Vice President of Regulatory & Environmental Affairs at Sable:
“Maintenance and repair activities that are exempt from Coastal Act permitting requirements have been conducted on the Las Flores Pipeline system under the pipeline’s existing Coastal Development Permits for the last 35+ years, and Sable believes recent work on the pipelines is within the scope of those historic activities. Sable has been extremely concerned about environmental risk from open excavations along the pipeline route since the Coastal Commission asked Sable to stop all work in the Coastal Zone at the end of September. Sable and the CCC are now working to agree on the terms of an interim work plan to fill the open excavations, and Sable will be prepared to start work immediately to fill those open excavations in order to protect the environment against erosion in case of any rain events. Restoring the excavations to their original condition will be the best way to ensure that the environment will be protected, which is the highest priority for the CCC and Sable. Once the CCC approves Sable’s interim work plan, Sable expects the work will take approximately seven days and Sable is prepared to start the work immediately. This coordination will allow for CCC and Sable to progress their discussions regarding how to proceed with the remaining pipeline maintenance and repair work in the Coastal Zone, without threat of erosion or other environmental impact during the onset of any inclement weather. We appreciate CCC staff’s engagement and efforts to work with us in trying to arrive at a solution, and share the Commission’s passion for protecting the environment and coastal resources.”
The Las Flores Pipeline system is 124 miles long and spans multiple properties. The open excavations with exposed pipe are limited to nine parcels of land in the Coastal Zone where pipeline maintenance and repair work already was underway. Outside of the Coastal Zone, Sable has continued its maintenance and repair activities along the pipeline to bring it to “as new” condition.
About Sable
Sable Offshore Corp. is an independent oil and gas company, headquartered in
Forward-Looking Statements
The information in this press release include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “could,” “should,” “will,” “ may,” “ believe,” “ anticipate,” “ intend,” “ estimate,” “expect,” “project,” “continue,” “plan,” forecast,” “predict,” “potential,” “future,” “outlook,” and “target,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements will contain such identifying words. These statements are based on the current beliefs and expectations of Sable’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those described in the forward-looking statements. Factors that could cause Sable’s actual results to differ materially from those described in the forward-looking statements include: the ability to recommence production of the SYU assets and the cost and time required therefor; global economic conditions and inflation; increased operating costs; lack of availability of drilling and production equipment, supplies, services and qualified personnel; geographical concentration of operations; environmental and weather risks; regulatory changes and uncertainties; litigation, complaints and/or adverse publicity; privacy and data protection laws, privacy or data breaches, or loss of data; our ability to comply with laws and regulations applicable to our business; and other one-time events and other factors that can be found in Sable’s Annual Report on Form 10-K for the year ended December 31, 2023, and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are filed with the Securities and Exchange Commission and are available on Sable’s website (www.sableoffshore.com) and on the Securities and Exchange Commission’s website (www.sec.gov). Except as required by applicable law, Sable undertakes no obligation to publicly release the result of any revisions to these forward-looking statements to reflect the impact of events or circumstances that may arise after the date of this press release.
Disclaimers
Non-Producing Assets
The SYU assets have not produced commercial quantities of hydrocarbons since such assets were shut in during June of 2015 when the only pipeline transporting hydrocarbons produced from such assets to market ceased operations. There can be no assurance that the necessary permits will be obtained that would allow the pipeline to recommence transportation and allow the assets to recommence production. If production is not recommenced by January 1, 2026, the terms of the asset acquisition with ExxonMobil Corporation would potentially result in the assets being reverted to ExxonMobil Corporation without any compensation to Sable therefor.
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Investor Contact:
Harrison Breaud
Director, Finance & Investor Relations
IR@sableoffshore.com
713-579-8111
Source: Sable Offshore Corp.
FAQ
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