South Bow, the Canada-based operator of the Keystone pipeline system, faces a proposed $26.9 million civil penalty following a massive oil spill in Kansas in December 2022.
The settlement with the US government also requires the company to spend approximately $40 million on preventive measures to avoid future accidents.
>>> BYD Offers Full Refunds to 1,265 Australian Buyers of Wrong-Year Cars
The agreement resolves allegations from the US Environmental Protection Agency (EPA) and Kansas state officials regarding violations of federal and state clean water laws.
Largest Onshore Spill in Nine Years
The pipeline rupture discharged nearly 13,000 barrels of heavy crude oil into a rural pasture creek in Washington County, about 150 miles northwest of Kansas City.
According to a 2021 report by the US Government Accountability Office, this incident is the largest onshore crude pipeline spill in the United States in nine years.
The volume surpassed all 22 previous accidents combined on the same pipeline system, nearly filling an Olympic-sized swimming pool.
Under the proposed decree filed in the US District Court in Kansas, South Bow will also pay the state more than $3 million for environmental restoration initiatives.
The decree awaits approval from a federal judge after a mandatory 30-day public comment period.
EPA Assistant Administrator Jeffrey Hall stated that the spill blanketed land and water, rendering the waterway lifeless and requiring extensive cleanup.
South Bow spokesperson Sara Hunter said the company proactively initiated its response before receiving formal government directives and completed comprehensive environmental remediation in February 2024.
