Sable Offshore Asks Feds to Seize State, Private Lands in Santa Barbara County

[Updated: July 8, 2026, 4:20 p.m.]

In its latest attempt to circumvent state laws and regulations, Sable Offshore Corp. is reportedly asking the federal government to seize the ground California has left to stand on — literally. 

The Houston-based oil company reportedly asked the Trump administration to exercise eminent domain to condemn and seize miles of private and state-owned land that contain its legally embattled oil pipelines. 

Sable restarted oil production in Santa Barbara County from its offshore platforms, onshore processing plant, and two pipelines — one of which ruptured in 2015 under different ownership and spilled more than 100,000 gallons of oil into the environment — in March. 

But they did so without approvals from the state, instead relying on an emergency order from the Trump administration to greenlight their operations. 

However, the state kept pushing back, including lawsuits to challenge the administration’s emergency order and a preliminary injunction request to halt the flow of oil. 

Additionally, the State Lands Commission is threatening to terminate Sable’s lease within the three miles of state waters that contain the infrastructure necessary to transport the offshore oil onshore, and the State Parks Department demanded the company remove the portion of its pipeline system that runs through Gaviota State Park. State Parks did so on the grounds that Sable does not have the necessary legal documentation to keep it there, let alone operate it, after it failed to sufficiently repair anomalies along the pipeline without proper environmental mitigation and never secured the long-term easement required to operate in the park. The pipeline’s continued presence in the park and the environmental impacts of the repair work are subject to ongoing litigation with the state.  

Thus, Sable’s most recent request to Washington.

In a June 2 letter to the U.S. Department of Energy made public this week by Politico, Sable reportedly says that two areas of “potential condemnation are required or advisable” and a third should be considered for “potential condemnation” because of a landowner dispute. In all, the letter reportedly asks the federal government to seize the three-mile stretch of state-owned submerged land off the coast of Santa Barbara; a large portion of Gaviota State Park, where approximately four miles of the pipelines traverse the coast; and a privately owned piece of undeveloped land that the pipelines cross north of Buellton. 

According to Politico, Sable is pursuing this as part of a push to create a new West Coast strategic petroleum reserve. 

But environmental groups, who have been fighting Sable since the beginning (i.e., since Sable bought its Santa Barbara County oil facilities from ExxonMobil in 2024), characterize the potential seizures, if approved, as a dangerous handout to Sable, which continues to operate the pipeline system in violation of several California environmental laws and existing court orders. 

“Seizing a big chunk of one of California’s most beautiful parks to boost a private oil company would be an unlawful and utterly outrageous abuse of federal power,” said Talia Nimmer, an attorney at the Center for Biological Diversity. “Trump officials should think twice before granting this shameless request. California’s coast took a massive hit from this pipeline system’s last leak, and we’ll fight to protect our ocean from another massive oil spill.”

Additionally, the state is continuing to fight the federal government’s determination that the pipelines are interstate — meaning that they cross state boundaries — despite never leaving the state of California. By qualifying them as such, the pipelines are subject to federal authority and oversight, escaping the scrutiny of the state and its safety requirements. Sable sought this federal bailout after the State Fire Marshal — the state agency once put in charge of approving any pipeline restart plans — found Sable’s pipeline repairs not up to par for operation.

On July 7, the Environmental Defense Center’s Chief Counsel Linda Krop attended a 9th Circuit Court of Appeals hearing on the federal government’s attempts to wrench control of the pipelines from the state. Arguments from both sides were heard, but questions remained among the panel of three judges, and no judgement was reached.

Sable is also facing money problems, as its stocks last week plummeted to an all-time-low close of $3.08, following the company’s claims it would raise $400 million through stocks and convertible note offerings to repay what it owes to Exxon Mobil for its facilities.

Their debt of nearly $700 million to Exxon comes due in only two weeks, after multiple extensions. In June, the company first agreed to pay Exxon $30 million to extend the deadline to July 24, which has now been extended to July 31. However, Sable stock did inch up by 28 cents on Tuesday, to $4.23.