Justice Department Files Proposed Settlement with Owner and Operator of Keystone Pipeline to Resolve Clean Water Act Violations for 2022 Pipeline Rupture in Kansa

Company Agrees to Pay More than $26.8M Civil Penalty, Complete Estimated $40M in Work to Prevent Future Discharges, and Pay State of Kansas $3 Million The Justice Department, on behalf of the Environmental Protection Agency (EPA) and State of Kansas, has filed a complaint and proposed consent decree to resolve allegations that South Bow (USA) LP and South Bow Infrastructure Operations Inc. — the owner and operator of the Keystone Pipeline — violated the Clean Water Act related to the 2022 rupture of the Keystone Pipeline 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 $26,867,789 and complete work designed to prevent future similar 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 towards natural resource restoration projects to resolve violations of Kansas state laws. 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 immediately 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 proposed consent decree are available at www.justice.gov/enrd/consent-decrees.