Keystone Pipeline Settlement Reached Over 2022 Kansas Oil Spill

Washington — The U.S. Environmental Protection Agency (EPA), the U.S. Department of Justice and the state of Kansas announced a Keystone Pipeline settlement to resolve allegations that South Bow (USA) LP and South Bow Infrastructure Operations Inc. — the pipeline’s owner and operator — violated the Clean Water Act following the 2022 pipeline rupture in Washington County, Kansas.

On Dec. 7, 2022, nearly 13,000 barrels of oil — approximately 543,000 gallons — leaked from the ruptured pipeline over land and into Mill Creek, creating an imminent and substantial threat to human health and the environment. The event was one of the largest inland oil spills in recent history, and the largest discharge ever from the Keystone Pipeline system.

As part of the settlement, South Bow has agreed to pay a civil penalty of more than $26 million and complete work designed to prevent similar future discharges, which South Bow estimates will cost approximately $40 million. South Bow has also agreed to contribute over $3 million to the state of Kansas toward natural resource restoration projects to resolve violations of Kansas laws.

“This case demonstrates why the oil pipelines crossing our heartland must be maintained properly. The oil spill blanketed land and water, rendering the waterway lifeless and useless and requiring extensive cleanup and remediation,” said Jeffrey A. Hall, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “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.”

“Pipelines are the safest means of transporting large quantities of oil and other liquids and gases over long distances,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Energy and Natural Resources Division (ENRD). “However rare, when a pipeline leaks, it can quickly escalate. That’s why an important part of this proposed settlement is the work the company has committed to do to help prevent future leaks.”

According to the complaint, after the 2022 spill, crude oil an inch thick covered Mill Creek bank-to-bank for 3.5 miles downstream of the rupture site. The Kansas Department of Health and Environment issued a stream advisory for Mill Creek to prohibit contact with the creek by people, livestock, or pets. The discharge covered vegetation and soil in the immediate surrounding area, and oil residue was found in the 35 acres surrounding the discharge. The spill killed or impacted more than 2,700 animals.

Following a 2023 EPA cleanup order, South Bow removed oil from the creek and surrounding areas and completed restoration of aquatic habitat, stream banks and shorelines.

The Keystone Pipeline is a 2,687-mile liquid oil pipeline system between Hardisty, Alberta, Canada, and Port Arthur, Texas. The rupture occurred in a section of the pipeline that stretches from Steele City, Nebraska, to Cushing, Oklahoma.

The consent decree was filed with the U.S. District Court for the District of Kansas and is subject to a 30-day public comment period. The complaint and the proposed consent decree are available on the Justice Department’s Proposed Consent Decree web page.

More information on the settlement is available on South Bow L.P. CWA Settlement Summary web page.

Discharges of pollutants, including oil, into federally protected waterways are violations of the Clean Water Act. Learn more about EPA’s Clean Water Act enforcement programs.