Sacramento, California, January 26, 2026 – Regulatory decisions and court filings set out a series of mandatory requirements for Sable Offshore Corp. ($SOC) as it aims to resume operations at the Santa Ynez Unit (SYU) in Santa Barbara County. The project, which has been idle since a pipeline rupture in 2015, is subject to a complex jurisdictional framework involving local, state, and federal authorities.

As per Sable’s filings with the Securities and Exchange Commission (SEC), the company has a deadline of March 1, 2026, to achieve “Restart Production.” Failing to reach this milestone could lead to the SYU assets reverting to ExxonMobil Corporation without any compensation to Sable.

Current Regulatory Status and Identified Barriers

A review of official actions and third – party analysis, including a report by Hunterbrook Media in January 2026 (, identifies several distinct regulatory and legal conditions that the project must meet to proceed:

• California Coastal Commission Jurisdictional Requirements

The California Coastal Commission (CCC) has an active Cease and Desist Order (CDO) and a Restoration Order regarding the pipeline. On October 15, 2025, a Santa Barbara Superior Court judge upheld these orders, ruling in favor of the Commission. As a result, Sable needs to obtain a Coastal Development Permit (CDP) for both past unpermitted activities and future repair work on pipeline segments within the Coastal Zone.

• Santa Barbara County Permit Transfer Denial

On December 16, 2025, the Santa Barbara County Board of Supervisors voted 3 – 1 to deny the transfer of essential operating permits from ExxonMobil to Sable. The Board’s findings cited concerns about operator capability and financial assurances. Under current county regulations, these permits are necessary for the legal operation of onshore facilities, including the processing plant at Las Flores Canyon.

• Pipeline Safety Jurisdiction and Ongoing Litigation

In December 2025, the federal Pipeline and Hazardous Materials Safety Administration (PHMSA) asserted oversight authority, designating the line as an interstate pipeline. This shifted primary safety oversight from the California Office of the State Fire Marshal (OSFM) to federal jurisdiction. However, on January 23, 2026, the California Attorney General filed a lawsuit against the federal government to challenge this transfer, seeking to return oversight to the OSFM, which had previously demanded more extensive safety audits and repairs.

• State Lands Commission Lease Obligations

Operating the pipeline requires valid leases from the California State Lands Commission (SLC) for segments crossing state – owned seafloor and tidelands. In a letter in May 2024, the SLC clarified that Sable’s preliminary testing activities did not count as a resumption of commercial production and emphasized that necessary regulatory approvals are still outstanding.

• Gaviota State Park Easement

A portion of the pipeline route goes through Gaviota State Park. Legal counsel for the Environmental Defense Center has stated in court records that Sable still has to obtain an easement from the California Department of Parks and Recreation, a process that usually requires an Environmental Impact Report (EIR) and can take a year or more to finalize.

• U.S. Coast Guard and Federal Platform Certification

The Bureau of Safety and Environmental Enforcement (BSEE) and the U.S. Coast Guard oversee the three offshore platforms (Hondo, Harmony, and Heritage). Sable must maintain approved Oil Spill Response Plans and platform integrity certifications to operate in federal waters.

• Ongoing Environmental Injunctions

The project is still subject to a preliminary injunction resulting from litigation brought by groups such as the Center for Biological Diversity and the Environmental Defense Center. On January 3, 2026, the U.S. Ninth Circuit Court of Appeals denied a request to immediately halt Sable’s restart plans, but the underlying lawsuit remains active, with the court ordering further briefs until early 2026.

Financial Condition

In its Q3 2025 10 – Q filing, Sable disclosed a “going concern” warning, stating significant doubt about its ability to continue due to a lack of revenue and significant upcoming debt maturities. The filing reported approximately $41.6 million in cash against nearly $900 million in debt. While a recent federal court decision declined to immediately halt the restart plans, the company noted that its liquidity depends on obtaining the necessary regulatory authorizations for its pipeline plan or its alternative ship – to – shore (OS&T) strategy.