Keystone pipeline operator fined $26.9M over 2022 Kansas oil spill

The operator of the Keystone pipeline system, South Bow, has agreed to pay a $26.9 million civil penalty and spend approximately $40 million on prevention to resolve allegations related to a major oil spill in Kansas in December 2022. The proposed settlement, filed Friday in U.S. District Court, also requires South Bow to pay Kansas more than $3 million for environmental restoration projects Source: AP News.

The spill

Nearly 13,000 barrels of heavy crude oil spilled into a creek in Washington County, Kansas, about 150 miles northwest of Kansas City. The accident was the largest onshore crude pipeline spill in the U.S. in nine years and surpassed all 22 previous spills on the same system combined Source: The Guardian. The oil blanketed land and water, rendering the waterway lifeless Source: The Guardian.

Environmental impact and cause

• More than 2,700 animals were harmed or killed, and the area is home to the endangered long-eared bat Source: AP News.
• A 2023 report found that a bend in the pipeline had been “overstressed” since installation in 2010, likely due to construction altering the land. The soil was “improperly compacted,” and the company did not replace that section when it re-excavated in 2013 Source: The Guardian.

Response and aftermath

South Bow proactively launched cleanup before receiving formal directives, with comprehensive remediation completed by February 2024 Source: The Guardian. No injuries or public water supply impacts were reported. The company has since conducted extensive inspections and repairs Source: AP News. The settlement requires court approval after a 30-day public comment period.