Keystone Operator to Pays Nearly $70M for Kansas Oil Spill


   
   HOUSTON, TX (DTN) -- The U.S. Environmental Protection Agency (EPA), the 
U.S. Department of Justice, and the state of Kansas have reached a $70 million 
settlement with the owner and operator of the Keystone Pipeline over a 2022 oil 
spill in rural Kansas.

   Federal and state officials announced the agreement with South Bow (USA) and 
South Bow Infrastructure Operations, resolving Clean Water Act violations 
stemming from a December 7, 2022, pipeline rupture in Washington County, 
according to an EPA statement released late Friday (7/10).

   Under the settlement, South Bow agreed to pay a $26.8 million civil penalty, 
fund an estimated $40 million in infrastructure improvements to prevent future 
spills, and contribute $3 million to Kansas for natural resource restoration. 
The combined value totals roughly $70 million.

   The pipeline rupture released nearly 13,000 bbl of crude oil across land and 
into Mill Creek, killing or impacting more than 2,700 animals and blanketing 
the waterway bank-to-bank for 3.5 miles. It stands as the largest discharge in 
the history of the Keystone Pipeline system.

   Following a 2023 EPA cleanup order, South Bow removed oil and restored 
aquatic habitat along Mill Creek. Kansas health officials had previously issued 
an advisory prohibiting human, livestock, and pet contact with the creek.

   The 2,687-mile Keystone Pipeline runs from Alberta, Canada, to Port Arthur, 
Texas.




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