Minimal test case

compile_with_libsass.py

#!/usr/bin/env python

import sass
import sys

infile, outfile = sys.argv[1:]

with open(infile) as f:
    # Defaults to output_style=nested -- leaving an explicit argument
    # as a reminder. Should be "compressed" in production -- may require
    # library to uglify output.
    compiled = sass.compile(string=f.read(),
                            output_style="nested",
                            include_paths=[])

with open(outfile, "w") as f:
    f.write(compiled)

expose_bug.sh

#!/bin/bash -x
python compile_with_libsass.py test.scss output.css

test.scss

@media (min-width: 980px) {
    a {
        color: red;
    }
}