Wedoany.com Report-Dec.25, A federal regulator has approved the restart of the Las Flores Pipeline System operated by Sable Offshore Corp. in California. The Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) determined that portions of the key onshore oil conduit fall under federal jurisdiction rather than state control.

The move follows last week's determination by the regulator that portions of the key oil conduit, the Las Flores Pipeline System, is under the domain of the federal government and not California.

The decision allows the restart of lines CA-324 and CA-325, pipelines built in the 1980s that transport offshore crude from coastal pump stations to inland destinations. Line CA-324, previously known as line 901, was involved in the 2015 Refugio oil spill under its former operator, Plains All American Pipeline. That incident released approximately 3,000 barrels of crude along the Santa Barbara coastline.

Sable Offshore Corp., based in Houston, acquired the assets from Exxon Mobil Corp. last year. The company has been working to resume production at a cluster of offshore drilling rigs. The approval follows PHMSA's notification to the California Office of the State Fire Marshal on December 17, 2025, indicating federal oversight of the pipelines.

Sable shares rose approximately 30% on Tuesday following the announcement.

Monique Limón, the incoming California Senate leader representing the district that includes Santa Barbara, said: “This pipeline was shut down because it was spewing oil into the ocean and onto our beaches, killing wildlife, disrupting the fishing, tourism and recreation jobs that are critical to our coastal economy and way of life. It is clear this reclassification is yet another attempt by this administration to circumvent state law, putting millions of Californians at risk.”

Limón is coordinating with state agencies and Governor Gavin Newsom to ensure compliance with California laws and prevent future incidents.

Julie Teel Simmonds, senior counsel for the oceans program at the Center for Biological Diversity, expressed skepticism about PHMSA's determination that the onshore pipelines are interstate. The nonprofit organization is prepared to explore all legal options if PHMSA attempts to issue special permits without standard public participation and environmental review processes.

The Center for Biological Diversity noted that a federal consent decree established after the 2015 Refugio spill remains in effect. The decree requires state waivers from agencies including the California Office of the State Fire Marshal, California State Parks, and others.

The California Natural Resources Agency is reviewing PHMSA's decision and assessing next steps, according to Deputy Secretary for Communications Daniel Villaseñor.

Sable Offshore Corp. did not respond to requests for comment.

The development occurs amid ongoing discussions about energy supply and infrastructure oversight in the United States. The Las Flores Pipeline System serves as a critical link for transporting offshore crude to refineries.

The approval highlights the complex interplay between federal and state regulatory roles in pipeline management. Stakeholders continue to monitor the situation as implementation proceeds.