The operator of the Keystone Pipeline has agreed to pay $26.9 million in civil penalties for a December 2022 spill that dumped nearly 500,000 gallons of heavy crude oil into a Kansas creek. The settlement, proposed by the EPA and the Department of Justice, also requires the company to spend an estimated $40 million on measures to prevent future accidents. The spill was the largest onshore crude pipeline incident in the U.S. in nine years and exceeded all previous spills on the Keystone system combined. The 2022 rupture released about 13,000 barrels of oil into a rural pasture in Washington County, Kansas. The cleanup was completed in early 2024. The operator, South Bow, will also pay Kansas more than $3 million for environmental restoration. The proposed settlement includes a 30-day public comment period before a judge can approve it. The case highlights ongoing risks from aging pipeline infrastructure and the high cost of failures in the oil transport system.
