Sable Offshore shares plunge amid California lawsuit over pipelines

Investing.com -- Sable Offshore shares dropped 10% on Friday after California's attorney general announced a lawsuit against the Trump administration for allowing the company to restart pumping oil through two state pipelines.

The legal action represents the latest development in an ongoing dispute between Sable and California officials regarding a drilling project off the Santa Barbara coast that was shut down following a 2015 oil spill.

California Attorney General Rob Bonta stated that the administration violated the law by reclassifying the Las Flores pipelines as "interstate" last month, despite the fact that they run between two California counties. This reclassification enabled the federal Pipeline and Hazardous Materials Safety Administration to issue an emergency permit allowing operations to resume.

The petition will be filed in the U.S. Court of Appeals for the Ninth Circuit, according to the attorney general's office.

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