The U.S. Department of Justice has come to an agreement with South Bow Corp., a pipeline company, regarding the rupture of the Keystone pipeline in 2022 that led to the spillage of nearly 13,000 barrels of oil in northern Kansas. As part of the settlement, the Calgary-based company will pay a civil penalty of $26.9 million related to Clean Water Act violations. Additionally, South Bow has committed to investing around $40 million to prevent similar incidents in the future and will pay $3 million for natural resource restoration projects to address state law violations.
The Justice Department highlighted that the spill was one of the largest inland oil spills in recent memory and the biggest from the Keystone pipeline system, stretching from Hardisty, Alberta, to Port Arthur, Texas. Adam Gustafson, deputy assistant attorney general, emphasized the importance of the company’s efforts to prevent future leaks as part of the settlement.
Jeffrey Hall, assistant administrator at the U.S. Environmental Protection Agency, stressed the significance of proper pipeline maintenance following the devastating impact of the spill on the environment. The spill, which covered Mill Creek extensively, resulted in the loss or harm of over 2,700 animals.
South Bow stated that it took proactive measures before receiving formal directives from U.S. authorities, including site cleanup that concluded in February 2024. The company has conducted thorough inspections and remedial work on the Keystone system to enhance its integrity and ensure safe operations.
The pipeline was previously owned by TC Energy Corp., which separated its oil pipeline operations into South Bow in late 2024. South Bow is looking to enhance its cross-border crude pipeline network and has initiated projects like the Prairie Connector to utilize existing infrastructure for expanded operations. This expansion project aims to connect to a proposed pipeline by Bridger Pipeline LLC, extending from the Canada-U.S. border to Wyoming.
