The US Justice Department filed a proposed settlement requiring the Keystone Pipeline owner and operator to pay over $26.8 million for the 2022 Kansas oil spill, the department said Friday.
The Justice Department, on behalf of the Environmental Protection Agency and the State of Kansas, accused South Bow and South Bow Infrastructure Operations of violating the Clean Water Act after the Keystone Pipeline ruptured in Washington County, Kansas.
The Dec. 7, 2022, rupture released nearly 13,000 barrels, or about 543,000 gallons, of crude oil into Mill Creek.
The spill became the largest discharge in the Keystone Pipeline system's history and one of the largest inland oil spills in recent years, the department said.
South Bow also agreed to spend about $40 million on measures to prevent similar incidents and contribute over $3 million to Kansas for natural resource restoration projects, the department said.
The complaint said oil up to 1 inch thick covered 3.5 miles of Mill Creek, contaminated 35 acres and killed or affected over 2,700 animals.
The 2,687-mile Keystone Pipeline transports crude oil between Hardisty, Alberta, and Port Arthur, Texas.
The proposed consent decree will undergo a 30-day public comment period before the court considers final approval, the department said.