After hours of debate, the San Luis Obispo County Board of Supervisors voted 4-1 Tuesday to uphold an appeal, denying the transfer of key oil and gas permits from ExxonMobil to Sable Offshore Corporation. The decision keeps Sable from legally operating facilities connected to the 2015 Refugio Oil Spill.
Supervisor Steve Lavagnino, who had previously supported the permit transfer, switched his vote after reviewing the company’s legal and regulatory troubles, including criminal charges, California Coastal Commission fines, and other enforcement actions.
“Without spilling a single drop of oil, Sable has managed to push back the reputation of the industry 20 years. If I was another Santa Barbara County gas and oil operator, I'd be livid,” Lavagnino said during the hearing.
Environmental groups called Sable “unfit to operate the dormant facility,” citing the company’s recent history of violations. County staff said the decision reflects concerns over whether Sable currently possesses the skills, training, and resources to safely manage the site.
Representatives for ExxonMobil and Sable argued that the county’s review was too narrow and warned that blocking the transfer could trigger legal action.
"The county cannot unjustifiably deny the Exxon Mobil asset affiliates the ability to exit from the permits despite the sale of the facilities. Doing so would infringe on their constitutionally protected rights and substantially impede the performance of the contract that Exxon Mobil has with Sable,” Laura Kaplan, an ExxonMobil representative, told the board.
“Exxon Mobil will continue to exercise its legal rights to ensure the permits are transferred and will seek to recover from the county all damages incurred," Kaplan said.
County staff will reconvene on Dec. 16 to finalize the denial and prepare formal findings.
The vote leaves the permits in legal limbo, keeping the future of offshore oil production off the Santa Barbara coast uncertain.
