California Judge Overrules President Trump on Oil Production

Last month I described a lawsuit by the California Department of Justice attempting to stop oil from being pumped from offshore oil platforms into the state. 

The backstory here was that President Trump, citing the war in Iran and the surge in gasoline prices, issued an executive order in March invoking the Defense Production Act and allowing a company that operates oil platforms off the coast of Santa Barbara begin pumping again.

President Donald Trump issued an executive order late Friday morning that would authorize the Secretary of the Department of Energy to greenlight Sable Offshore oil company’s ongoing efforts to restart production at the much-fought-over Santa Ynez Unit off the coast of Gaviota. Energy Secretary Christ Wright quickly followed up by doing exactly that.

“Today’s order will strengthen America’s oil supply and restore a pipeline system vital to our national security and defense, ensuring that the West Coast military installations have the reliable energy critical to military readiness,” Wright stated.

The Defense Production Act of 1950 was used several times by President Joe Biden during his term: to increase domestic mining, to counteract drug shortages and even to increase the supply of baby formula. So this is not some unknown federal power that Democrats are unfamiliar with.

In any case, Sable, the company that operates the oil platforms, began pumping oil through a pipeline, claiming the executive order took precedence over a preliminary injunction issued last year. California sued to stop that. 

Friday a California judge ruled that the Trump administration’s emergency order under the Defense Production Act did not overrule the California injunction.

A preliminary injunction issued last July required the company to secure all necessary state approvals — and give the court 10 days’ notice — before restarting.

Instead, Sable began moving oil again in March, pointing to a federal directive ordering it to “prioritize and allocate pipeline transportation services” under the Defense Production Act. In court, Sable argued that the federal order effectively overrides those state requirements — that it cannot comply with both.

[Judge Donna] Geck disagreed.

“The most important thing is the judge denied Sable’s request … the injunction is still in place,” said Linda Krop, chief counsel from the EDC. “She flat out said ‘You still have to comply’.”

The distinction is a technical one, but with broad consequences. Federal law can preempt state law — but only when the two are in direct conflict. Here, the court found no such conflict. Sable can comply with the federal directive while still obtaining state permits and following the court’s order.

Judge Geck is saying that Sable, the company that operates the oil platforms, can comply with both the emergency order from the Trump administration and the state order requiring them to secure state approvals. Of course this makes no sense. The feds are telling them ‘go now, this is an emergency’ and the state is saying ‘stop immediately, you aren’t authorized to operate.’ Judge Geck’s conclusion effectively elevates the state injunction over the president’s order. The CA Post editorial board had some thoughts about this.

A county judge in Santa Barbara has decided that she has more power than the President of the United States to regulate American energy supplies in wartime…

Judge Beck has ruled that there is no clash between federal and state law here. She says Sable can still comply with Trump’s orders, while first seeking permission from the state.

The very idea of that is ridiculous, to anyone with actual experience of California bureaucracy. 

The war is happening right now; California’s regulators might — might — approve Sable’s request in several years…

In wartime, whom should the company obey: President Trump, or a county judge?

Judge Geck has set a hearing for next month to decide whether to hold the company in contempt of court. Hopefully a higher court will correct Judge Geck on appeal. Then again, it’s possible the emergency, in the form of the war with Iran, will be over before this gets sorted out.

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