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Judge Orders Disclosure in Sable Pipeline Fight as Trump Weighs Defense Production Act

The disclosure order refocuses investors on legal risk following reports of potential Defense Production Act use.

Overview

  • A federal court directed officials to release internal deliberations, emails, texts, and other messages with Sable Offshore after finding grounds to question whether the approval process was rushed, Bloomberg Law reported.
  • Reports this week said President Donald Trump is considering invoking the Defense Production Act to aid Sable’s access to California infrastructure for a Las Flores restart.
  • A Justice Department Office of Legal Counsel opinion stated that a presidential order issued under delegated authority carries the force of federal law and may preempt contrary state law.
  • Sable has restarted its Santa Ynez offshore unit but cannot move or sell hydrocarbons through the long-shuttered Las Flores facility pending court and regulatory outcomes.
  • Shares reversed part of a midweek rally and were recently down 6.53% to $16.31 on Friday as traders reassessed legal and regulatory risk tied to the court’s disclosure ruling.