The U.S. Department of Justice has come to terms with South Bow Corp, a pipeline company, regarding a rupture in the Keystone pipeline in 2022 that resulted in the spill of nearly 13,000 barrels of oil in northern Kansas. As part of the settlement, the Calgary-based company will pay a $26.9 million civil penalty for Clean Water Act violations.
Additionally, South Bow has committed to investing approximately $40 million in preventive measures to avoid similar incidents in the future. They will also allocate $3 million towards natural resource restoration projects in the state to address violations of state laws. The Justice Department highlighted this spill as one of the largest inland oil spills in recent memory and the biggest from the Keystone pipeline system, which stretches from Hardisty, Alberta, to Port Arthur, Texas.
Adam Gustafson, the deputy assistant attorney general, emphasized the importance of the company’s commitment to prevent future leaks, stating, “However rare, when a pipeline leaks, it can quickly escalate.”
Jeffrey Hall, assistant administrator at the U.S. Environmental Protection Agency, stressed the significance of proper pipeline maintenance, noting the extensive cleanup and remediation efforts required due to the spill’s impact on land and waterways. The spill covered Mill Creek bank-to-bank for 5.6 kilometers with crude oil more than two centimeters thick, resulting in the harm or death of over 2,700 animals.
South Bow stated that they took proactive corrective actions even before formal directives from U.S. authorities. The cleanup efforts at the site were completed by February 2024. The company’s spokeswoman, Sara Hunter, mentioned that they have conducted inspections on a significant portion of the Keystone system to ensure its integrity and have undertaken remedial actions to reinforce the system.
The pipeline, previously owned by TC Energy Corp., experienced previous spills, with an estimated 3,500 barrels spilled in North Dakota in April 2025. South Bow is planning to enhance its cross-border crude pipeline system by expanding the Prairie Connector project, which aims to utilize unused pipeline infrastructure originally designated for the Keystone XL expansion project. The Prairie Connector project is intended to connect to a pipeline proposed by Bridger Pipeline LLC from the Canada-U.S. border to Wyoming.
