DOJ secures $69M Keystone pipeline spill settlement

By Niina H. Farah | 07/10/2026 01:23 PM EDT

A proposed agreement submitted to a federal court Friday includes civil penalties, restoration costs and future pipeline safety work.

Aerial view of cleanup at the Keystone pipeline rupture site in Washington County, Kan.

The ruptured Keystone pipeline dumped oil into a creek in Washington County, Kansas, on Dec. 9, 2022. DroneBase via AP

The Justice Department has reached a proposed settlement with the owner and operator of the Keystone pipeline to fund cleanup and monitoring costs following a 2022 oil spill that contaminated a creek in northern Kansas.

The agreement, which includes the state of Kansas and EPA, would require South Bow to pay $69 million in civil penalties, as well as provide funding for restoration and spill prevention.

The terms of the agreement, along with a legal complaint detailing the operator’s violations, were filed in a federal court in Kansas on Friday and are subject to a 30-day public comment period.

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“This case demonstrates why the oil pipelines crossing our heartland must be maintained properly,” said Jeffrey Hall, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance.

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