The operator of the Keystone Pipeline, South Bow, has agreed to pay $26.9 million in civil penalties for a December 2022 spill that dumped nearly 13,000 barrels of heavy crude oil into a Kansas creek. The settlement also requires the company to spend an estimated $40 million on measures to prevent future accidents. The EPA and Department of Justice accused the company of violating clean water laws, and the proposed decree includes over $3 million for Kansas restoration projects. The 2022 rupture was the largest onshore crude pipeline spill in the U.S. in nine years, releasing enough oil to nearly fill an Olympic-sized swimming pool. More than 2,700 animals were harmed or killed, and the area is home to an endangered bat species. A 2023 report found that a bend in the pipeline had been overstressed since installation in 2010 due to improper soil compaction, and the company did not replace that section during a 2013 re-excavation. This settlement highlights the ongoing risks of fossil fuel infrastructure and the costs of pipeline failures. For those tracking carbon markets and climate policy, it underscores the financial and environmental liabilities tied to continued oil transport, especially as new pipeline projects are approved.
