The Trump administration on Wednesday asserted jurisdiction over an oil pipeline that California regulators have repeatedly censured.
What happened: Sable Offshore Corp. on Wednesday published a letter from the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration in which the agency said it would take over regulation of the Las Flores pipeline system from the California Office of the State Fire Marshal.
Why it matters: The federal takeover is a major win for the oil company, as the OSFM had signaled serious concerns about the firm’s application to restart the pipeline system that can carry oil from its offshore rigs to shore.
Context: Sable has been pushing to transfer oversight from California state and local officials, who have thrown up numerous roadblocks to their project, to the oil-industry-friendly Trump administration.
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