When a Texas oil company first announced controversial plans to reactivate three drilling rigs off the coast of Santa Barbara County, investor presentations boasted that the venture had “massive resource potential” and was “primed for cash flow generation.”

But now, less than two years later, mounting legal setbacks and regulatory issues are casting increasing doubt on the project’s future.

Most recently, the California attorney general filed suit against Houston-based Sable Offshore Corp., accusing it of repeatedly putting “profits over environmental protections.” The lawsuit, filed last week in Santa Barbara County Superor Court, accuses Sable of continually failing to follow state laws and regulations intended to protect water resources.

Sable, the lawsuit claims, “was at bes

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