[Stay on top of transportation news: Get TTNews in your inbox.]
South Bow to pay $26M in Keystone spill case in Kansas
Settlement with Trump administration and state addresses alleged Clean Water Act violations
The Washington County Road Department constructs an emergency dam to intercept an oil spill after a Keystone pipeline ruptured at Mill Creek in Washington County, Kan., in 2022. (Kyle Bauer/KCLY/KFRM Radio via Associated Press)
Key Takeaways:
- The Trump administration, Kansas and South Bow settled alleged Clean Water Act violations tied to a 2022 Keystone Pipeline spill.
- The rupture leaked nearly 13,000 barrels of oil in Washington County, Kan., including crude that entered Mill Creek and affected 2,700 animals.
- South Bow agreed to pay more than $26 million in penalties, fund prevention work and contribute over $3 million for restoration.
The Trump administration and the state of Kansas have settled with the owner and operator of the Keystone Pipeline over alleged violations of the Clean Water Act stemming from a 2022 oil spill.
The Department of Justice and Environmental Protection Agency, along with Kansas, on July 10 announced that South Bow LP and South Bow Infrastructure Operations agreed to pay a civil penalty of more than $26 million and for work to prevent future spills that the companies estimate will cost $40 million. The companies will also contribute more than $3 million to Kansas for natural resources restoration.
In December 2022, the Keystone Pipeline ruptured in Washington County, Kan., and leaked nearly 13,000 barrels of oil, some of which entered Mill Creek. According to the complaint, an inch of crude oil covered the creek for at least 3 miles downstream from the rupture site and the spill affected more than 2,700 animals.
“The oil spill blanketed land and water, rendering the waterway lifeless and useless and requiring extensive cleanup and remediation,” said Jeffrey A. Hall, assistant administrator for the EPA’s Office of Enforcement and Compliance Assurance. “The substantial penalty reflects the seriousness of the environmental harm, and the other requirements of the settlement reflect the need to prioritize pipeline integrity and maintenance for this critical infrastructure.”
The Keystone Pipeline traverses more than 2,000 miles from Hardisty, Alberta, to Port Arthur, Texas.
South Bow said it already completed “comprehensive environmental remediation” at the rupture site in February 2024, has inspected more than 2,100 miles of the Keystone Pipeline system and completed more than 70 integrity verification digs. “We remain committed to working collaboratively with regulators and are focused on continuous improvement, transparency, environmental stewardship, and the safe and reliable operation of our pipeline network,” said Sara Hunter, a company spokesperson.
