Sable Offshore has secured a temporary reprieve from environmental activists after California regulators granted a five-day variance for its Platform Heritage, allowing the company to exceed permitted air pollution levels.
The Air Pollution Control District’s hearing examiner, Terrence Dressler, ruled that the excess emissions, described as technical “hiccups,” should be resolvable within 90 days. The variance bridges the period until June 30, when a new emissions period begins, and Sable expects to bring unplanned flaring within allowable limits.
The decision came despite objections from environmental groups, including the Environmental Defense Center and the Center for Biological Diversity, which have opposed Sable’s return to offshore oil production. Attorneys for these groups argued that Sable had not provided sufficient evidence to prove it could resolve the issues within the stated timeframe or to support its claim of losing approximately $1.75 million daily if production were reduced.
Platform Heritage, located eight miles off the Santa Barbara coast, resumed operations in March after being idle for nine years following the 2015 Refugio pipeline spill. Sable purchased the platform, along with two others, from Exxon two years ago. According to a company representative, Patrice Surmeier, Sable invested $110 million over the past year to prepare Platform Heritage for its restart, employing a team of approximately 180 crew members, engineers, consultants, and technical specialists. Despite extensive testing of all inspectable equipment, the company reported persistent, unexpected problems.
In its variance application, Sable cited an “unexpected number of equipment malfunctions, onshore and offshore production balancing issues, and well production issues” as the cause for increased unplanned flaring.
Dressler, who previously spent 34 years with the Air Pollution Control District, noted that such startup setbacks are not uncommon for platforms returning to service after extended shutdowns. He explained that while new offshore platforms often include grace periods for initial issues, Platform Heritage’s classification as a restart rather than a new facility meant no such provision was in its existing permit, necessitating the variance hearing.
Dressler emphasized that his ruling was based solely on the technical merits of the case and not on the company's contentious history with regulators. He stated that he asked himself if he would have made the same decision for any other company and concluded that he would have, affirming that Sable receives equal protection under the district’s regulations.