On Dec. 7, 2022, nearly 13,000 barrels of oil (543,000 gallons) leaked from the ruptured pipeline over land and into Mill Creek, creating an imminent and substantial threat to human health and the environment. The event was one of the largest inland oil spills in recent history, and the largest discharge ever from the Keystone Pipeline system.
As part of the settlement with the Department of Justice (DoJ) and the Environmental Protection Agency (EPA), South Bow has agreed to pay a civil penalty of $26.9 million. Additionally, they will complete work designed to prevent future similar discharges, which South Bow estimates will cost $40 million. Furthermore, South Bow also agreed to contribute over $3 million to the state of Kansas. That will go toward natural resource restoration projects to resolve violations of Kansas state laws.
Prevent Future Leaks
“Pipelines are the safest means of transporting large quantities of oil and other liquids and gases over long distances,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Energy and Natural Resources Division (ENRD). “However rare, when a pipeline leaks, it can quickly escalate. That’s why an important part of this proposed settlement is the work the company has committed to do to help prevent future leaks.”
“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,” said Assistant Administrator Jeffrey A. Hall for EPA’s Office of Enforcement and Compliance Assurance. “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.”
After the 2022 spill, crude oil one inch thick covered Mill Creek bank-to-bank for 3.5 miles downstream of the rupture. The Kansas Department of Health and Environment issued a stream advisory for Mill Creek. The advisory prohibited contact with the creek by people, livestock, or pets.
The discharge covered vegetation and soil in the immediately surrounding area. Furthermore, officials located oil residue in the 35 acres surrounding the discharge. The spill killed or impacted more than 2,700 animals.
Started Cleanup Work
Following a 2023 EPA cleanup order, South Bow removed oil from the creek and surrounding areas. The company also completed restoration of aquatic habitat, stream banks, and shorelines.
The Keystone Pipeline is a 2,687-mile liquid oil pipeline system between Hardisty, Alberta, Canada, and Port Arthur, Texas. The rupture occurred in a section of the pipeline that stretches from Steele City, Nebraska, to Cushing, Oklahoma.
The consent decree was filed with the U.S. District Court for the District of Kansas and is subject to a 30-day public comment period. Click here to view the complaint and proposed consent decree.