Offshore oil plan was 'primed for cash flow,' but then it hit California regulators

"When a Texas oil company first announced controversial plans to reactivate three drilling rigs off the coast of Santa Barbara County, investor presentations boasted that the venture had "massive resource potential" and was "primed for cash flow generation." But now, less than two years later, mounting legal setbacks and regulatory issues are casting increasing doubt on the project's future. Most recently, the California attorney general filed suit against Houston-based Sable Offshore Corp., accusing it of repeatedly putting "profits over environmental protections.""

"The lawsuit, filed last week in Santa Barbara County Superor Court, accuses Sable of continually failing to follow state laws and regulations intended to protect water resources. Sable, the lawsuit claims, "was at best misinformed, incompetent and incorrect" when it came to understanding and adhering to the California Water Code. "At worst, Sable was simply bamboozling the Regional Water Board to meet a critical deadline," according to the lawsuit."

"The action comes less than a month after the Santa Barbara County district attorney's office filed criminal charges against the company, accusing it of knowingly violating state environmental laws while working on repairs to oil pipelines that have sat idle since a major spill in 2015. The company also faces legal challenges from the California Coastal Commission, environmental groups and even its own investors."

A Houston-based oil company announced plans to reactivate three drilling rigs off Santa Barbara, promoting "massive resource potential" and near-term cash generation. Multiple legal actions now challenge the project, including a California attorney general lawsuit accusing repeated violations of water-protection laws and claiming the company "was at best misinformed... at worst... bamboozling" regulators. The Santa Barbara district attorney filed criminal charges alleging knowing environmental law violations during pipeline repairs tied to a 2015 spill. The company also faces actions from the Coastal Commission, environmental groups and investors. Experts warn accumulated legal and regulatory setbacks create substantial investor and project viability risk.

Read at Los Angeles Times