On Friday, California's attorney general announced a lawsuit against the Trump administration over federal authority asserted on two pipelines, allowing Sable Offshore to resume oil pumping. This move follows a 2015 spill that released over 100,000 gallons of crude oil along the Santa Barbara coast.
The legal battle highlights the tensions between President Trump's push for increased domestic fossil fuel production and California Governor Gavin Newsom's aggressive climate policies. Sable shares dropped 17% on the New York Stock Exchange after California's lawsuit was publicized.
Attorney General Rob Bonta criticized the administration for reclassifying the Las Flores pipelines as 'interstate,' bypassing state oversight and enabling an emergency permit for operations. The lawsuit will be filed with the U.S. Court of Appeals for the Ninth Circuit.
