The US Department of Justice (DOJ) announced that a federal district court in California dismissed a challenge to oil and gas production related to the Santa Ynez Pipeline. This announcement comes less than two weeks after DOJ announced a related ruling that rejected attempts to shut down the pipeline.

Following a decade of inactivity, an energy company sought to restart offshore oil and gas production on a platform in the Santa Ynez Unit. The Bureau of Ocean Energy Management (BOEM) did not require revision of the platform’s development and production plan as a condition to restart production. An environmental group challenged BOEM’s decision; on August 31, 2026, the federal court dismissed the challenge.

Lack of Standing
For a federal court to have jurisdiction, plaintiffs must establish standing. Groups that seek standing must show at least one of their members would have standing as an individual. In this case, the group lacked standing because it could not allege how any of its members would be specifically injured by BOEM’s decision. The group’s theory of causation was “far too hypothetical and attenuated.” It could not show an injury “fairly traceable” to BOEM’s decision.

Agency’s Substantial Discretion
Standing also requires the alleged injury to be “redressable” through relief the court can give. In keeping with other recent federal court decisions, the dismissal order said the alleged injuries are not redressable because BOEM has substantial discretion in deciding whether to require revision of the plan.

To see DOJ’s press release, which includes a link to its earlier announcement, Office of Public Affairs | Federal Court Dismisses Another Attempt to Stymie Sable Offshore Corporation’s Oil and Gas Operations | United States Department of Justice