Three years after one of the largest inland oil spills, the state of Kansas, federal government and the company that operates the pipeline have agreed to a settlement totalling $70 million.
The U.S. Environmental Protection Agency, the U.S. Department of Justice, and the state of Kansas reached a settlement agreement with the company South Bow responsible for the Keystone pipeline, which ruptured in 2022 in northern Kansas.
In a press release from the EPA, the agency said South Bow violated the Clean Water Act.
“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 for EPA's Office of Enforcement and Compliance Assurance, said in the release.
In December 2022, the pipeline that runs from Canada to Texas broke near Washington, Kansas, causing 543,000 gallons of oil to leak.
South Bow has agreed to pay a civil penalty of almost $27 million and complete projects to prevent further damage, which South Bow estimates will cost approximately $40 million.
South Bow has also agreed to contribute over $3 million to the state of Kansas towards natural resource restoration projects.
At the time of the spill, Canadian oil company TC Energy owned the pipeline. The company spun off that part of the business into South Bow in 2024.
South Bow had said that faulty welding caused an “instantaneous rupture” spilling out tar-like crude oil affecting Kansas native prairie, cropland and Mill Creek.
The Department of Justice said in a press release that this “created an imminent and substantial threat to human health and the environment.”
According to the EPA’s legal complaint, oil residue was found in the 35 acres surrounding the discharge. The spill killed or impacted more than 2,700 animals.
“It is important that we are all good stewards of the environment,” U.S. Attorney Ryan A. Kriegshauser for the District of Kansas said in the release. “The incident had a massive impact on the State of Kansas, and we are happy that this settlement will mitigate that damage.”
Calen Moore covers western Kansas for High Plains Public Radio and the Kansas News Service. You can email him at cmoore@hppr.org.
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