Keystone Pipeline Operator to Pay $26.9M for Kansas Oil Spill

TC Energy, the operator of the Keystone pipeline system, has proposed a $26.9 million civil penalty settlement with the US government to resolve allegations of violating clean water laws following a significant oil spill in Kansas in December 2022. The agreement also mandates the company to invest approximately $40 million in measures aimed at preventing future accidents. This proposed settlement addresses claims brought forth by the US Environmental Protection Agency (EPA) and the state of Kansas concerning the rupture that released nearly 13,000 barrels of heavy crude oil into a creek in Washington County, Kansas. The spill occurred about 150 miles northwest of Kansas City, impacting a rural pasture. The settlement aims to conclude the legal proceedings related to South Bow, the Canadian-based operator, and its adherence to US and state clean water regulations. The incident in December 2022 was one of the largest spills in the history of the Keystone pipeline, highlighting environmental concerns associated with crude oil transportation infrastructure. The proposed financial penalties and preventative investment underscore the regulatory scrutiny and environmental responsibilities faced by major energy pipeline operators.