HyperLocal Loop
Jul 12, 2026
The Your

Close to home. Always in the loop.

Keystone Pipeline Operator to Pay $26.9M Penalty

The Keystone Pipeline system’s operator has agreed to pay a $26.9 million civil penalty over a major oil spill in Kansas in December 2022. The proposed settlement would also require the company to spend about $40 million more to prevent future accidents.

Environmental Impact

The rupture dumped nearly 13,000 barrels of heavy crude oil into a creek running through a rural pasture 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 ones on the same pipeline system combined.

The oil spill blanketed land and water, rendering the waterway lifeless and useless and requiring extensive cleanup and remediation. More than 2,700 animals were harmed or killed, and the area is home to an endangered species, the long-eared bat.

Settlement Details

South Bow, the pipeline operator, has disputed the government’s allegations and does not acknowledge any legal liability. The proposed agreement said both parties are avoiding litigation and the settlement would be “fair, reasonable and in the public interest.”

South Bow would also pay Kansas more than $3 million for environmental restoration projects under a proposed decree filed in U.S. District Court in Kansas. A judge would have to approve the proposal after a 30-day public comment period.


Original reporting: KTBS 3 (Shreveport) — read the source article.

OBBM Network Editorial Staff

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Editorial team behind OBBM Network — independent, hyper-local journalism syndicated through HyperLocalLoop and OBBM Network TV.

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