Keystone Pipeline operator agrees to pay $26.9 million over 2022 spill

The operator of the Keystone Pipeline has reached a proposed settlement with the U.S. government, agreeing to pay $26.9 million in civil penalties for a massive oil spill in December 2022. The agreement also mandates the company invest an estimated $40 million to prevent future accidents.

The spill saw nearly 13,000 barrels of crude oil, enough to fill an Olympic-sized swimming pool, dumped into a Kansas creek. The U.S. Environmental Protection Agency and the state of Kansas accused the pipeline's operator, Canada-based South Bow, of violating clean water laws. The proposed settlement aims to resolve these allegations.

This incident marked the largest onshore crude pipeline spill in the U.S. in nine years. A complaint filed in U.S. District Court in Kansas also states that more than 2,700 animals were harmed or killed. The affected area is home to the endangered long-eared bat.

An engineering report indicated that the pipeline's bend, where the spill occurred, had been overstressed since its installation in 2010, potentially due to altered land around the pipe from construction. South Bow stated it began cleanup proactively before receiving directives and completed the work in early 2024. Public water supplies were not affected, and no workers or residents were injured.

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The oil spill blanketed land and water, rendering the waterway lifeless and useless and requiring extensive cleanup and remediation. The substantial penalty reflects the seriousness of the environmental harm.