Full Breakdown
Proposed Settlement Over Kansas Keystone Oil Spill
7/13/2026, 6:15:45 AM
Settlement Details and Penalties
A proposed decree filed in U.S. District Court in Kansas would require South Bow, the operator of the Keystone pipeline, to pay a $26.9 million civil penalty for the December 2022 spill and to invest roughly $40 million in safety upgrades. The same settlement would obligate South Bow to provide Kansas with more than $3 million for environmental restoration projects. A judge must approve the decree after a 30-day public comment period.
Spill Background and Causes
On a cold December night in 2022, a rupture in the Keystone system released nearly 13,000 barrels of heavy crude into a creek on a rural pasture in Washington County, Kansas—about 150 miles northwest of Kansas City. The incident became the largest on-shore crude spill in the United States in nine years, surpassing the combined volume of the pipeline’s previous 22 spills. An engineering consulting report dated May 2023 identified the pipe bend where the leak occurred as “overstressed” since its installation in December 2010, likely due to land-altering construction activity. The complaint alleges that soil beneath the pipe was “improperly compacted” and that a 2013 re-excavation failed to replace the affected pipe segment.
Official Statements
“The oil spill blanketed land and water, rendering the waterway lifeless and useless and requiring extensive cleanup and remediation,” said Jeffrey Hall, the EPA’s assistant administrator for enforcement.
“We proactively launched our response to the spill before receiving formal directives from government officials, including comprehensive environmental remediation completed in February 2024,” said South Bow spokesperson Sara Hunter.
Environmental Impact and Criticism
The U.S. government’s filing claims more than 2,700 animals were harmed or killed, including the endangered long-eared bat. South Bow reports that since the spill it has completed over 12,000 miles of pipeline inspections and 400 excavations to assess and repair pipe integrity. Critics highlight the alleged construction-related stress on the pipeline and question whether the proposed penalties and remediation fully address the ecological damage.
Next Steps
The settlement awaits judicial review following the comment period. If approved, South Bow must begin the $40 million safety program and fund Kansas-based restoration while continuing compliance monitoring of the 2,689-mile Keystone system that transports Canadian tar-sand oil to refineries in Illinois, Oklahoma, and Texas.
