FOLLOW US

America July 12, 2026 5 mins read

South Bow to Pay Nearly $27M Penalty Plus $40M in Prevention Work and $3M to Kansas After 2022 Rupture Released 13,000 Barrels Into Mill Creek

America ı By Rihem Akkouche

0 Comments

keystone pipeline $26m settlement

Nearly three years after nearly 13,000 barrels of crude oil gushed into a Kansas creek and triggered one of the most significant environmental disasters in American pipeline history, the owner and operator of the Keystone Pipeline has agreed to pay more than $26 million to resolve violations of the Clean Water Act — with the total financial reckoning climbing closer to $70 million when prevention work and state penalties are included.

The US Department of Justice, acting on behalf of the Environmental Protection Agency and the state of Kansas, filed a proposed settlement Friday with South Bow LP and South Bow Infrastructure Operations Inc., the companies responsible for the pipeline that ruptured on December 7, 2022, near Washington, Kansas, sending a torrent of crude oil into Mill Creek and setting off a round-the-clock cleanup effort that would last more than a month and consume the labor of hundreds of workers.

The Numbers Behind the Settlement

The proposed agreement carries a civil penalty of $26,867,789 — a figure calibrated to the scale and severity of a spill that fouled a Kansas waterway, disrupted local ecosystems, and exposed the systemic vulnerabilities of infrastructure that regulators now say had been under stress for more than a decade.

But the financial obligations do not end there. South Bow has also agreed to complete remediation and prevention work that the company itself estimates will cost approximately $40 million — engineering and structural improvements designed to prevent a repeat of the conditions that caused the rupture. On top of the federal penalty, South Bow agreed to pay the state of Kansas an additional $3 million, earmarked specifically for natural resource restoration projects addressing violations of Kansas state environmental law.

In total, the settlement commits South Bow to expenditures approaching $70 million — a number that reflects not just the cost of the spill's immediate aftermath, but the price of operating aging infrastructure without adequate safeguards.

The Spill That Rewrote Pipeline Records

The December 2022 rupture near Washington, Kansas, was not a minor incident buried in regulatory filings. It was the largest oil spill in the Keystone Pipeline's operational history — a distinction that brought the pipeline renewed and unwelcome scrutiny from federal regulators, environmental advocates, and the communities living downstream from its path.

The numbers are staggering in their specificity. Nearly 13,000 barrels of crude oil — more than 650,000 gallons — poured into Mill Creek, a waterway that connects to a broader watershed and whose contamination required emergency response operations running 24 hours a day, seven days a week, for just over a month. The EPA declared the major phase of the cleanup complete on October 31, 2023 — nearly a full year after the rupture first occurred.

The pipeline's operator at the time, TC Energy, attributed the failure to structural stress on the pipe combined with what it described as "a weld flaw" — a term that, in the context of infrastructure carrying hundreds of thousands of barrels of crude oil daily, carries enormous consequences when it fails.

Twelve Years of Stress — and Nobody Stopped It

The most damning detail in the regulatory record surrounding the spill does not come from the cleanup reports or the settlement filing. It comes from a third-party investigation conducted by the Pipeline and Hazardous Materials Safety Administration, the federal agency responsible for pipeline safety oversight.

That report concluded the Keystone Pipeline had been operating under stress for approximately 12 years before the December 2022 rupture — meaning the conditions that produced the largest spill in the pipeline's history were not sudden, not unforeseeable, and not the product of an isolated manufacturing defect. They were the accumulated product of more than a decade of strain that inspection and maintenance protocols failed to catch, flag, or correct before the pipe gave way and 650,000 gallons of crude oil found their way into Mill Creek.

That finding — 12 years of stress, one catastrophic rupture — forms the moral and regulatory core of everything the settlement is designed to address.

Prevention as Part of the Price

The $40 million in prevention work that South Bow has agreed to undertake is, in some respects, the most consequential component of the settlement. Civil penalties punish past conduct. Prevention expenditures are meant to change future behavior — to force the kind of structural investment in integrity management that, had it been made earlier, might have identified and corrected the weld flaw and stress conditions before they produced a disaster.

Whether $40 million in future prevention work is commensurate with 12 years of inadequate oversight of a pipeline carrying crude oil through the American heartland is a question the settlement does not answer. What it does answer — at least partially — is who pays for the consequences: the company that owned and operated the pipeline, to the tune of nearly $70 million in combined penalties and remediation costs.

What the Settlement Means for Kansas

The $3 million directed to Kansas for natural resource restoration represents a recognition that the spill's impact was not merely regulatory — it was ecological and local. Mill Creek and the surrounding watershed absorbed the environmental consequences of the rupture, and the communities and ecosystems along that waterway are entitled to investment in their recovery.

The proposed settlement is subject to a period of public comment before it receives final court approval — a standard procedural step that allows citizens, environmental groups, and other stakeholders to weigh in on whether the terms adequately address the harm caused.

For the Keystone Pipeline, the Washington, Kansas, rupture of December 2022 will stand as the defining moment of its operational history — the day a weld flaw that had been building for 12 years finally gave way, and the bill for that failure came due.

Previous Article

two killed in Toronto After Deadly street festival shooting

Read More
4594 Posts

Rihem Akkouche

Rihem Akkouche is a passionate journalist dedicated to shedding light on compelling stories, sparking conversations, and fostering a more informed world.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America November 10, 2026 Oil Giants Earn $25 Billion as Drivers Pay More By – Michallie K Harrison
America November 10, 2026 Colts agree to trade WR Josh Downs to Chiefs By – Rachel Moore
America November 10, 2026 Texas Man Charged With Murder in Galveston Cruise Ship Death By – Tyler Brooks
America November 10, 2026
Pete Hegseth faces impending House impeachment…

U.S. Defense Secretary Pete Hegseth faces a potentially historic political…

By – Tyler Brooks
America November 10, 2026
Hulu Revisits California’s Speed Freak Killers…

Hulu is taking viewers back into one of California’s most…

By – Jackie Allen
America November 10, 2026
Infant Bleeding Surges as Vitamin K…

Infant bleeding rose as fewer newborns received vitamin K shots,…

By – Michallie K Harrison
America November 10, 2026
UGA Leads $8 Million Initiative to…

The University of Georgia (UGA) has received an $8 million…

By – Jackie Allen
America November 10, 2026
Hegseth Impeachment: A Defiant Fight to…

WASHINGTON — The Hegseth impeachment fight escalated Tuesday as the…

By – Michallie K Harrison
America November 10, 2026
Newsom Commutes All 548 California Death…

Gov. Gavin Newsom on Thursday, Nov. 5, announced he will…

By – Derek Johnson
America November 10, 2026
FBI Investigates Nvidia CEO Jensen Huang’s…

By Samuel López | USA Herald WASHINGTON — Nvidia CEO…

By – Samuel Lopez
America November 10, 2026
OpenAI Hit With Racketeering Lawsuit Over…

Behind the $20 Billion Deal Three Georgia residents accuse OpenAI…

By – Samuel Lopez
America November 9, 2026
Jasmyne Garcia  Beaten to Death  in…

MORGAN HILL, Calif. — Jasmyne Garcia, 34, was allegedly beaten…

By – Jackie Allen
America November 9, 2026
Hegseth Impeachment: 8 Charges Put the…

WASHINGTON — Rep. Thomas Massie renewed his Hegseth impeachment push…

By – Michallie K Harrison
America November 9, 2026
Natalee Holloway Case Returns to Spotlight…

  ARUBA — More than 20 years after Natalee Holloway…

By – Jackie Allen
America November 9, 2026
Jenson Huang Scandal: Nvidia Investigates CEO’s…

SAN FRANCISCO (AP) — Jenson Huang, the chief executive of…

By – Jackie Allen
America November 9, 2026
Trump Downplays Iran Strikes as U.S.…

WASHINGTON — President Donald Trump says major new Iran strikes…

By – Michallie K Harrison
America November 9, 2026
Russell Brand Sentenced to 10½ Years…

LONDON — Russell Brand was sentenced to 10 years and…

By – Michallie K Harrison
America November 9, 2026
Nvidia Probes Alleged Spy Operation Targeting…

WASHINGTON — Nvidia’s Jensen Huang investigation will examine reports that…

By – Michallie K Harrison
America November 9, 2026
Chappelle’s Charlie Kirk Joke Tests Free…

Dave Chappelle’s Charlie Kirk joke has drawn angry responses from…

By – Michallie K Harrison
America November 8, 2026
JWST discovers 104 magnified stellar events…

Astronomers using NASA’s James Webb Space Telescope have identified 104…

By – Jackie Allen
America November 8, 2026
Artemis Program: NASA Seeks New Astronauts…

CAPE CANAVERAL, Fla. — NASA is recruiting a new generation…

By – Jackie Allen
Breaking News November 10, 2026
Nvidia Opens Investigation Into CEO Jensen…

Nvidia's board has opened an investigation into reports that CEO…

By – Derek Johnson
America November 7, 2026
KPMG Settles – Agrees To Pay…

What the $224.5 Million Settlement Reveals KPMG agreed to a…

By – Samuel Lopez
America November 7, 2026
Mike Tyson And Ric Flair Score…

Inside the $50 Million Legal Battle A federal judge rejected…

By – Samuel Lopez
America November 7, 2026
Online Fashion Retailer Revolve Group, Inc.…

What Court Records Reveal About the Revolve Lawsuit A federal…

By – Samuel Lopez
America November 7, 2026
Four States Sue Trump Administration Over…

What’s at Stake in the Medicaid Court Battle Four states…

By – Samuel Lopez
America November 7, 2026
McDonald’s Sued Over ‘Sugar-Free’ Coffee Drinks…

What’s Brewing Behind the Lawsuit Eight McCafé beverages allegedly contain…

By – Samuel Lopez
America November 6, 2026
Hackers Target French Blood Banks In…

By Samuel Lopez – USA Herald A cyberattack targeting blood-storage…

By – Samuel Lopez
America November 5, 2026
AI Flagged Bias in Trump Climate…

WASHINGTON — Researchers on a Trump climate panel asked Microsoft…

By – Michallie K Harrison
America November 5, 2026
Russell Brand Convicted of Rape, Taken…

LONDON — Russell Brand was convicted of rape and three…

By – Michallie K Harrison
America November 3, 2026
Supreme Court Takes Up Colorado Preschool…

What the Justices Must Decide Colorado says every publicly funded…

By – Samuel Lopez
America November 2, 2026
California Botox Doctor Gets 15 Years…

What the Medicare Records Revealed A California doctor billed more…

By – Samuel Lopez
America October 31, 2026
A New 2026 Twin Study Revives…

Three Takeaways Identical twins and triplets were separated through adoption…

By – Samuel Lopez
America November 5, 2026
Dallas Cowboys Face  Crisis After Crushing…

By Jackie Allen | USA Herald The Dallas Cowboys are…

By – Jackie Allen
America November 4, 2026
WNBA: DeWanna Bonner Makes Emotional Admission…

ATLANTA — The WNBA Finals ended in heartbreak for the…

By – Jackie Allen
America November 4, 2026
Inés Gómez Mont Arrested by ICE…

MIAMI —  Inés Gómez Mont, a former television personality who…

By – Jackie Allen
America October 31, 2026
Bill Belichick and Jordon Hudson Reportedly End…

Bill Belichick and Jordon Hudson reportedly ended their romantic relationship…

By – Jackie Allen
America October 29, 2026
Brewers Beat Rays to Win First…

ST. PETERSBURG, Fla. — The Milwaukee Brewers won their first…

By – Michallie K Harrison
America October 23, 2026
Connor Hellebuyck Traded to New Jersey…

The New Jersey Devils have made a major move to…

By – Tyler Brooks

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter