The U.S. Department of Justice has come to an agreement with South Bow Corp, a pipeline company, regarding the rupture of the Keystone pipeline in northern Kansas in 2022, which resulted in the spillage of nearly 13,000 barrels of oil. As part of the settlement, the Calgary-based company will pay a civil penalty of $26.9 million for Clean Water Act violations. South Bow has also committed to investing approximately $40 million in preventive measures and $3 million for state natural resource restoration projects to address state law violations.
The Justice Department highlighted that the incident was one of the largest inland oil spills in recent history and the biggest from the Keystone pipeline network, stretching from Hardisty, Alberta, to Port Arthur, Texas. Adam Gustafson, deputy assistant attorney general, emphasized the importance of the company’s pledged preventive actions to avert future leaks, acknowledging the rapid escalation potential of pipeline leaks.
Jeffrey Hall, assistant administrator at the U.S. Environmental Protection Agency, stressed the significance of maintaining pipelines properly, citing the devastating impact of the oil spill on land and water, necessitating extensive cleanup and remediation efforts. The Justice Department reported that the spill covered Mill Creek bank-to-bank with crude oil over two centimeters thick for 5.6 kilometers, resulting in the death or harm of over 2,700 animals.
In response, South Bow stated that it took proactive corrective actions before formal directives from U.S. authorities, including completing site cleanup by February 2024. The company’s spokesperson, Sara Hunter, mentioned ongoing efforts to reinforce the pipeline system’s integrity through inspections and remedial work, demonstrating a commitment to safe and reliable operations.
Formerly owned by TC Energy Corp., the pipeline experienced previous spills, including a 3,500-barrel spill in North Dakota in April 2025. South Bow has future plans to expand its cross-border crude pipeline system, such as the Prairie Connector project, which aims to utilize existing infrastructure for the Keystone XL expansion project. This project would connect to a pipeline proposed by Bridger Pipeline LLC from the Canada-U.S. border to Wyoming.
