DOJ Opinion Says Trump Could Override California Laws to Restart Oil Pipeline

A U.S. Justice Department opinion says the president could use the Defense Production Act to override California laws blocking the restart of offshore oil production and the Santa Ynez Pipeline System.

(P&GJ) — A legal opinion from the U.S. Department of Justice says the president could use the Defense Production Act (DPA) to override California laws that currently block the restart of offshore oil production and pipeline operations tied to the Santa Ynez Pipeline System.

The March 3 memorandum from the Justice Department’s Office of Legal Counsel was prepared for the Department of Energy and examines whether a presidential order under the DPA could allow Sable Offshore Corp. to resume production from the Santa Ynez Unit (SYU), an offshore oilfield in federal waters off California.

The DOJ concluded that such an order could preempt state restrictions.

“We conclude that it would,” the opinion states in response to whether a Defense Production Act order could override California laws blocking pipeline operations.

The opinion explains that presidential directives issued under congressional authority carry the force of federal law and may override conflicting state regulations.

“An order issued as an exercise of congressionally delegated authority or the President’s constitutional powers has the force of federal law under the Supremacy Clause and may preempt contrary state law,” the memo says.

Pipeline System at Center of Dispute

The legal question centers on Sable Offshore’s efforts to restart the Santa Ynez Unit, which historically produced oil transported through a network of offshore and onshore pipelines known as the Santa Ynez Pipeline System.

According to the DOJ opinion, the field represents a major West Coast energy resource.

Located in federal waters in the Pacific Ocean, the Santa Ynez Unit is described as “the largest known offshore oilfield in the United States.”

The field is estimated to contain about 904 million barrels of oil in place and produced more than 670 million barrels between 1981 and 2014, according to the filing.

Production historically moved through pipelines connecting offshore platforms to onshore facilities at Las Flores Canyon before continuing to California refineries through the Las Flores Pipeline System.

State Regulations Blocking Restart

Sable Offshore has argued that California regulations have prevented the company from restarting pipeline operations and oil production from the field.

In the filing cited by the DOJ, the company said state agencies have used multiple regulatory measures to block operations.

According to the opinion, Sable reported that “California agencies have deployed an array of state measures…to block pipeline operations.”

The memo cites actions including state legislation, permitting processes and delays tied to easements and regulatory approvals affecting pipeline infrastructure.

DPA Authority Could Override State Law

The DOJ analysis focuses on whether the Defense Production Act — a federal law historically used to direct industrial production for national defense — could be applied to energy infrastructure.

The opinion states the law gives the president broad authority to direct private companies when necessary for national security or energy supply.

The memo notes that the DPA allows the president to allocate resources or prioritize contracts “necessary or appropriate to promote the national defense” or to “maximize domestic energy supplies.”

Under those authorities, the president could issue an order requiring Sable to resume production and operate the associated pipeline system.

Such an order could also directly override conflicting state laws if they prevent compliance with the federal directive.

“If such state measures make it impossible for Sable immediately to resume production and distribution of oil…they would be displaced as a matter of conflict preemption,” the opinion says.

Implications for Energy Infrastructure

The opinion does not itself restart the pipeline, but outlines the legal pathway for federal action.

If a presidential order were issued under the Defense Production Act, the DOJ said it could override certain state restrictions and potentially allow offshore production and pipeline operations tied to the Santa Ynez system to resume.

The opinion also notes that such an order could shield companies from penalties or liability tied to state laws if those laws conflict with compliance under the federal directive.