The U.S. Department of Justice has settled with South Bow Corp, a pipeline company, over a rupture in the Keystone pipeline in 2022 that resulted in the spillage of nearly 13,000 barrels of oil in northern Kansas. As part of the agreement, the Calgary-based company will pay a civil penalty of $26.9 million US for Clean Water Act violations. Additionally, South Bow has committed to investing approximately $40 million US in preventive measures to avoid similar incidents in the future and to contribute $3 million US towards state natural resource restoration projects to address violations of state laws.
According to a recent statement from the Justice Department, the oil spill in Kansas was one of the largest inland spills in recent times and the biggest from the Keystone pipeline system, which stretches from Hardisty, Alberta, to Port Arthur, Texas. Adam Gustafson, deputy assistant attorney general, emphasized the importance of the company’s pledged efforts to prevent future leaks as part of the settlement.
Jeffrey Hall, assistant administrator at the U.S. Environmental Protection Agency, highlighted the significance of maintaining pipelines properly in light of the spill’s impact on the environment. The spill covered Mill Creek with crude oil more than two centimetres thick for 5.6 kilometres, resulting in the death or harm of over 2,700 animals.
South Bow stated that it took corrective actions proactively before receiving formal directives from U.S. authorities and completed the cleanup of the site by February 2024. The company’s spokeswoman, Sara Hunter, mentioned that extensive inspections and remedial work have been carried out on the Keystone system to enhance its integrity and operational safety.
Initially under TC Energy Corp., the pipeline was transferred to South Bow in late 2024. The Keystone system has a history of spills, with a notable incident in April 2025 where an estimated 3,500 barrels leaked onto agricultural land in North Dakota.
South Bow’s plans include expanding its cross-border crude pipeline system, with initiatives like the Prairie Connector project aimed at utilizing existing pipe infrastructure for enhanced connectivity. This project aligns with the company’s commitment to maintaining a secure and reliable pipeline system while continually reinforcing pipeline integrity.
The company’s ongoing efforts to strengthen pipeline operations and integrity reflect its dedication to safe and reliable energy transportation.