Full Breakdown
Settlement Reached Over 2022 Keystone Pipeline Spill in Kansas
7/13/2026, 12:56:58 AM
The Settlement and Penalties
A proposed settlement filed in U.S. District Court in Kansas would require South Bow LP and its affiliate South Bow Infrastructure Operations Inc., the owners and operators of the Keystone Pipeline, to pay a civil penalty of $26,867,789 and to fund approximately $40 million in infrastructure upgrades designed to prevent future releases. The companies also agreed to contribute more than $3 million to the state of Kansas for natural-resource restoration projects. A judge must approve the agreement after a 30-day public-comment period.
Background to the 2022 Rupture
On December 7, 2022, a section of the Keystone system in Washington County, Kansas, ruptured, releasing nearly 13,000 barrels (about 543,000 gallons) of heavy crude into Mill Creek and surrounding prairie. The pipeline, a 2,600-plus-mile conduit that moves Canadian tar-sand oil to refineries in Illinois, Oklahoma and Texas, had been in service since December 2010. A 2023 engineering report described the pipe bend at the rupture site as “overstressed” and noted that soil beneath the pipe had been “improperly compacted” after a 2013 re-excavation, without replacement of the affected pipe segment.
Environmental Impact and Numbers
- Oil released: ~13,000 barrels (? 543,000 gallons).
- Oil recovered: more than 650,000 gallons by the end of the cleanup in October 2023.
- Area affected: roughly 35 acres of land and a 3.5-mile stretch of Mill Creek.
- Wildlife loss: over 2,700 animals killed or harmed, including the endangered long-eared bat.
- Scale: the spill was the largest on-shore crude spill in the United States in nine years and the biggest ever on the Keystone system.
Official Government Responses
The EPA and the Department of Justice framed the settlement as “fair, reasonable and in the public interest,” emphasizing that the penalty reflects the seriousness of the environmental harm. EPA officials highlighted the need for proper pipeline maintenance to protect the “heartland.” U.S. Attorney Ryan A. Kriegshauser described the incident as an “imminent and substantial threat to human health and the environment” and praised the settlement for mitigating the damage to Kansas.
Criticism and Ongoing Opposition
Environmental and Indigenous advocacy groups, which have long opposed the Keystone XL extension, reiterated concerns that the pipeline’s aging infrastructure poses persistent risks to ecosystems and water supplies. They argue that the settlement, while sizable, does not address broader questions about the continued operation of fossil-fuel pipelines across the Midwest.
Conflicting Reports and Gaps
- Penalty amount: Sources list $26.9 million, $26,867,789, and “nearly $27 million.”
- Total settlement figure: Some reports cite a combined $70 million package (penalty, remediation costs and state contributions), while others focus only on the federal civil penalty and the $40 million upgrade commitment.
- Oil volume: Figures range from “nearly 13,000 barrels” to “more than 540,000 gallons” and “over 650,000 gallons recovered,” reflecting different measurement points in the cleanup timeline.
Verbatim Quotes
- “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.” — Jeffrey A. Hall, Assistant Administrator, EPA Office of Enforcement and Compliance Assurance
- “This case demonstrates why the oil pipelines crossing our heartland must be maintained properly.” — Jeffrey A. Hall, EPA
- “The substantial penalty reflects the seriousness of the environmental harm.” — Jeffrey A. Hall, EPA
- “It is important that we are all good stewards of the environment,” — Ryan A. Kriegshauser, U.S. Attorney, District of Kansas
- “The incident had a massive impact on the State of Kansas, and we are happy that this settlement will mitigate that damage.” — Ryan A. Kriegshauser, U.S. Attorney, District of Kansas
