Santa Barbara County supervisors have voted to nearly triple the annual coastal mitigation fee for Sable Offshore, raising it from $132,750 to $318,600. The decision, approved 4-0 by the Board of Supervisors, applies to Sable's Santa Ynez Unit and is retroactive to the company's restart of partial oil production in March.
Supervisor Joan Hartmann recused herself from the vote due to a potential conflict of interest, as Sable's pipelines run near her property. The fee increase, calculated using the same number of "points" assigned to the Santa Ynez Unit before the 2015 Refugio oil spill, reflects inflation. Sable had requested that the fee increase not be made retroactive.
Errin Briggs, deputy director of the county's Energy, Minerals and Compliance Division, stated that the increased fee is necessary for fairness now that operations have resumed. Supervisor Steve Lavagnino supported the retroactive hike, confirming the county's authority to impose it.
The fee, first imposed on offshore oil operators in the 1980s, directs funds to nonprofits and organizations for coastal projects. These projects have included developing hiking trails, restoration efforts, and supporting educational programs like the Cabrillo High School Aquarium.
The fee increase occurs as Sable faces ongoing legal and regulatory challenges regarding its return to offshore oil production. The county, the California Coastal Commission, and environmental groups have filed lawsuits contesting the restart. However, the federal government has supported Sable's operations.
A wrinkle in the county's regulatory approach emerged when Supervisor Bob Nelson questioned who should be billed for the fees, as the county had not formally approved the transfer of old permits from Exxon to Sable. The county is currently sending bills to both companies, with Sable bearing the payment responsibility. Briggs indicated that the county bills both parties to acknowledge the situation, but Sable, as the current operator, is responsible for payment.
Sable Offshore took over the Santa Ynez Unit's platforms, processing facility, and pipelines in 2024. The company's Las Flores Canyon facility, which processes oil from offshore platforms, is situated in a landscape of rolling hills near the coast. The company's operations have been marked by a public-facing message of "WELLS FLOWING SALES METER ROLLING AMERICAN OIL FROM AMERICAN SOIL!"