Key facts
- The U.S. Justice Department filed a proposed settlement with South Bow, owner of the Keystone oil pipeline.
- The settlement resolves Clean Water Act violations related to a 2022 oil spill in Kansas.
- South Bow will pay a civil penalty of over $26 million.
- The company will also complete preventative work estimated to cost $40 million.
- South Bow will contribute over $3 million to Kansas for natural resource restoration projects.
The U.S. Justice Department announced on Friday that it has filed a proposed settlement with South Bow, the owner and operator of the Keystone oil pipeline, to resolve violations of the Clean Water Act. The violations stem from a significant oil spill that occurred in Washington County, Kansas, in December 2022.
The 2022 rupture released approximately 14,000 barrels of oil into a creek, marking the largest U.S. oil spill in nine years. An investigation concluded that a crack in a weld, exacerbated by pressure and temperature fatigue, caused the pipeline to rupture.
Under the terms of the proposed settlement, South Bow has agreed to pay a civil penalty exceeding $26 million. Additionally, the Canadian company will undertake work designed to prevent future oil discharges, an effort estimated to cost $40 million. South Bow will also contribute over $3 million to Kansas for natural resource restoration projects, resolving violations of state laws.