What You Need to Know
• The federal government proposed a $26.9 million settlement for the Keystone Pipeline’s operator, South Bow.
• The December 2022 oil spill released nearly 13,000 barrels of crude oil into a Kansas creek.
• South Bow is also required to invest $40 million in future accident prevention measures.
The federal government, through the U.S. Environmental Protection Agency, proposed a settlement requiring South Bow, the owner and operator of the Keystone Pipeline, to pay $26.9 million in civil penalties due to a significant oil spill that occurred in December 2022 in Kansas. The spill released nearly 13,000 barrels of heavy crude oil into a creek in Washington County, approximately 150 miles northwest of Kansas City, making it the largest onshore crude pipeline spill in the United States in nine years. In addition to the penalties, the settlement would mandate South Bow to allocate an estimated $40 million for measures aimed at preventing future incidents. The proposed agreement, which also includes over $3 million for environmental restoration in Kansas, requires judicial approval following a 30-day public comment period.
Why It Matters
This proposed settlement addresses serious violations of U.S. and state clean water laws following the Keystone Pipeline spill, which significantly impacted local ecosystems. The incident harmed or killed over 2,700 animals and affected an area that includes an endangered species, the long-eared bat. The spill’s magnitude, which surpassed all previous incidents on the same pipeline system combined, highlights ongoing concerns regarding pipeline safety and environmental protection. The financial penalties and mandated investments in prevention underscore the federal government’s commitment to enforcing environmental regulations.
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