The Environmental Protection Agency (EPA) said on July 10 that the operator of the Keystone Pipeline has agreed to pay $26.8 million in civil penalties to resolve alleged violations of the Clean Water Act stemming from a 2022 rupture in Kansas.
Canada-based South Bow, the pipeline’s operator, also agreed to invest an estimated $40 million in efforts aimed at preventing future accidents, according to the agency’s statement.
Under the settlement agreement, South Bow will also contribute $3 million to the state of Kansas for natural resource restoration projects to resolve violations of state laws, it added.
The Keystone Pipeline is a 2,687-mile liquid oil pipeline system that runs from Hardisty, Alberta, Canada, to Port Arthur, Texas. The rupture occurred in December 2022 on the segment between Steele City, Nebraska, and Cushing, Oklahoma, according to the EPA.
The 2022 rupture spilled nearly 13,000 barrels of oil into Mill Creek in Washington County, Kansas, in what officials described as one of the largest inland oil spills in recent history.
A complaint filed by the U.S. government on July 10 said that oil covered the surface of Mill Creek in “an inch-thick layer” for 3.5 miles downstream of the rupture site, with oil residue found across 35 acres of ground surface, impacting soil, vegetation, and the creek banks.
More than 2,700 animals were killed or affected by the spill, according to the EPA.
“The oil spill blanketed land and water, rendering the waterway lifeless and useless and requiring extensive cleanup and remediation,” Jeffrey A. Hall, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance, said in the statement.
“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.”
South Bow spokesperson Sara Hunter said in a statement to news outlets that the company responded to the spill before receiving formal directives from government officials, including what she described as “comprehensive environmental remediation” that was completed in 2024.
Hunter added that South Bow has conducted more than 12,000 miles (19,312 kilometers) of pipeline inspections and 400 excavations to examine pipe and make repairs where necessary since the spill occurred.
“This work reflects our ongoing commitment to the safe, reliable operation of our pipeline system and to continuously strengthening pipeline integrity,” the spokesperson said.
The EPA said the company has removed oil from the creek and surrounding areas and restored stream banks and shorelines in accordance with a 2023 cleanup order.
