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U.S. Justice Dept Reaches Deal with South Bow Regarding Keystone Spill in 2022

South Bow will pay a $26 million penalty and spend $40 million on spill prevention after a 2022 rupture released 543,000 gallons of oil.

  • On Friday, July 10, 2026, the Department of Justice and the Environmental Protection Agency filed a proposed settlement with South Bow LP to resolve Clean Water Act violations from a 2022 Keystone Pipeline rupture in Kansas.
  • The December 7, 2022, incident occurred in Washington County, Kansas, when the pipeline ruptured and spilled nearly 13,000 barrels of oil into Mill Creek, triggering an emergency shutdown.
  • South Bow agreed to pay a $26 million civil penalty and contribute over $3 million to Kansas for restoration, while committing $40 million in preventative work after the spill killed or impacted 2,700 animals.
  • The consent decree is subject to a 30-day public comment period before finalization, with the DOJ framing the settlement as balancing critical infrastructure needs against environmental accountability.
  • Federal agencies, including the U.S. Army Corps of Engineers, will monitor the site for up to 5 years to ensure restoration success and ongoing environmental compliance.
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Winnipeg Free Press broke the news in Winnipeg, Canada on Friday, July 10, 2026.
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