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Market Chatter: Sable Offshore Can Continue Las Flores Pipeline Operations Under Federal Order

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Sable Offshore (SOC) can use a federal emergency order to continue pumping oil through its disputed Las Flores pipeline system in California, after a court rejected the state's challenge, Bloomberg reported Wednesday.

The court shifted pipeline oversight from California regulators to the federal government, but found Sable out of compliance for starting oil pumping before securing the required state approvals, imposing a $1.45 million penalty, the report said.

The court said the Defense Production Act gives the president broad authority to compel private industry and direct resources for national defense, supporting the federal order, according to the report.

Sable Offshore and the US Department of Energy did not immediately reply to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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$KMI