Trump Administration Secures $69 Million Settlement for 2022 Keystone Pipeline Spill in Kansas

The Justice Department and the Environmental Protection Agency announced that South Bow LP, the owner of the Keystone Pipeline, will pay a $26 million civil penalty, invest $40 million in infrastructure upgrades, and remit $3 million to the state of Kansas for environmental restoration. The settlement follows the December 2022 rupture that released more than 540,000 gallons of crude oil into a creek and adjacent farmland, creating the largest spill in the pipeline’s history and affecting roughly 2,700 animals.

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The Keystone system, which traverses the U.S. heartland, has been the focus of controversy since the Keystone XL extension was first proposed in 2008. After former President Joe Biden revoked the XL permit in 2021, the project was terminated by developer TC Energy. Former President Donald Trump signed a presidential permit in April 2024 to revive the extension, but the pipeline’s future remains uncertain amid ongoing legal and environmental challenges.

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EPA Assistant Administrator Jeffery Hall emphasized the severity of the incident, noting that the “substantial penalty” reflects the “seriousness of the environmental harm.” U.S. Attorney Ryan Kriegshauser described the spill as having a “massive impact on the state of Kansas.” Both officials linked the settlement to broader enforcement priorities for pipelines crossing the nation’s agricultural regions.

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Environmental advocates and Indigenous groups have long opposed the Keystone XL expansion, arguing that the pipeline threatens water resources and wildlife. The settlement’s penalties are viewed by some critics as insufficient to deter future incidents, while supporters cite the required infrastructure upgrades as a step toward safer operations.

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• “This case demonstrates why the oil pipelines crossing our heartland must be maintained properly.” — Jeffery Hall, EPA Assistant Administrator for the Office of Enforcement and Compliance Assurance

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• “This case demonstrates why the oil pipelines crossing our heartland must be maintained properly. The oil spill blanketed land and water, rendering the waterway lifeless and useless and requiring extensive cleanup and remediation.” — Jeffery Hall, EPA Assistant Administrator for the Office of Enforcement and Compliance Assurance

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• “seriousness of the environmental harm,” — Jeffery Hall, EPA Assistant Administrator for the Office of Enforcement and Compliance Assurance

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• “massive impact on the state of Kansas,” — Ryan Kriegshauser, U.S. Attorney for the District of Kansas

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