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PHMSA Clears Sable Offshore’s Plan to Restart Las Flores Pipeline

The federal signoff follows a jurisdictional determination that places the line under U.S. oversight.

Overview

  • Sable Offshore disclosed in an SEC 8-K that PHMSA approved its restart plan for the Las Flores Pipeline on Monday.
  • PHMSA determined the pipeline falls under federal authority and should be treated as an active interstate line under federal safety rules.
  • PHMSA western region director Dustin Hubbard said the agency conducted a field inspection to review restart processes and safety procedures.
  • Sable Offshore shares rose about 21% to $9.18 intraday on Tuesday, extending gains after last week’s rally.
  • The pipeline has faced legal battles since a 2015 spill, and the company remains loss-making with multiple recent EPS misses.