The U.S. Justice Department has filed a proposed settlement with South Bow, the owner of the Keystone oil pipeline, to resolve Clean Water Act violations stemming from a 2022 rupture in Kansas. The deal includes a $26 million civil penalty and environmental restoration projects.
This settlement addresses environmental damage and regulatory violations resulting from a major oil spill, highlighting ongoing efforts to ensure the safety and environmental integrity of critical energy infrastructure like the Keystone pipeline.
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.
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