Keystone pipeline owner settles 2022 Kansas spill for $26.8 million
(UI) — The owner and operator of the Keystone Pipeline has agreed to pay more than $26.8 million to resolve federal and state allegations stemming from the 2022 pipeline rupture in Washington County, Kansas, one of the largest inland oil spills in recent U.S. history.
The settlement, announced by the U.S. Environmental Protection Agency (EPA), the U.S. Department of Justice (DOJ) and the state of Kansas, resolves alleged violations of the Clean Water Act by South Bow (USA) LP and South Bow Infrastructure Operations Inc.
The Dec. 7, 2022, rupture released nearly 13,000 barrels of crude oil, or about 543,000 gallons, over land and into Mill Creek. EPA said the spill created an immediate threat to human health and the environment and was the largest release in the Keystone Pipeline system's history.
Under the proposed settlement, South Bow will pay a civil penalty of more than $26.8 million, invest an estimated $40 million in measures designed to reduce the risk of future pipeline failures and provide more than $3 million to Kansas for natural resource restoration projects.
"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," said Jeffrey A. Hall, assistant administrator for EPA's Office of Enforcement and Compliance Assurance.
According to EPA, crude oil coated Mill Creek for approximately 3.5 miles, contaminated about 35 acres surrounding the rupture site and affected more than 2,700 animals. The Kansas Department of Health and Environment issued a stream advisory following the spill.
EPA ordered cleanup activities in 2023, and the agency said South Bow has since removed oil from the creek and completed restoration of aquatic habitat, stream banks and shorelines.
"An important part of this proposed settlement is the work the company has committed to do to help prevent future leaks," said Adam Gustafson, principal deputy assistant attorney general for the Justice Department's Environment and Natural Resources Division.
The consent decree has been filed with the U.S. District Court for the District of Kansas and remains subject to a 30-day public comment period.
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