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South Bow to pay $26.9 million in settlement tied to 2022 Keystone spill in Kansas

A proposed settlement would require South Bow, the Keystone Pipeline system operator, to pay a $26.9 million civil penalty tied to a major oil spill in Kansas and to spend about $40 million more on measures aimed at preventing future accidents, Western Kansas News reported.

Cleanup crews work along a rural creek near an oil pipeline while a courthouse stands in the background.

The agreement would resolve allegations by the U.S. Environmental Protection Agency and Kansas over violations of federal and state clean water laws. In December 2022, a rupture released nearly 13,000 barrels of heavy crude oil into a creek through a rural pasture in Washington County, Kansas, about 150 miles northwest of Kansas City.

Under a proposed decree filed in U.S. District Court in Kansas, South Bow would also pay Kansas more than $3 million for environmental restoration projects. A judge would need to approve the decree after a 30-day public comment period. The spill caused harm to more than 2,700 animals, according to a complaint filed with the settlement, and the area is home to the endangered long-eared bat.

South Bow spokesperson Sara Hunter said the company began its response before receiving formal directives and later completed environmental remediation in February 2024. The company said it has conducted more than 12,000 miles of inspections and carried out 400 excavations since the spill.