Pipeline operator to spend $40M on spill prevention measures

The December 2022 rupture in Washington County, northwest of Topeka, sent crude oil into Mill Creek and adjacent agricultural land. Federal officials described the spill as the largest ever from the Keystone Pipeline, which stretches 2,687 miles from Hardisty, Alberta, to Port Arthur, Texas.

Under the settlement, South Bow LP and South Bow Infrastructure Operations Inc. will pay a civil penalty of more than $26 million and carry out system upgrades the company estimates will cost approximately $40 million. The state of Kansas will receive $3 million to restore damaged natural resources.

“The substantial penalty reflects the seriousness of the environmental harm, and the other requirements of the settlement reflect the need to prioritize pipeline integrity and maintenance for this critical infrastructure,” Jeffrey A. Hall, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance, said in a statement.

U.S. Attorney Ryan A. Kriegshauser for the District of Kansas called the incident “a massive impact on the State of Kansas” and said the settlement “will mitigate that damage.”

EPA Region 7 Administrator Jim Macy said agency staff logged many thousands of hours cleaning up Mill Creek and described the settlement as a partnership between federal and state agencies to protect the nation’s waters and prevent future spills.

The Keystone Pipeline system has been a focus of environmental and political controversy for years. A separate proposed expansion, Keystone XL, was canceled in 2021 after President Joe Biden revoked its permit. MSI previously reported that President Donald Trump earlier this year approved a permit for the Bridger Pipeline Expansion, a separate Canada-to-U.S. project sometimes called “Keystone Light.”