South Bow agrees to pay $26.9 million penalty over December 2022 Keystone Pipeline oil spill in Kansas.
A proposed legal settlement filed July 11, 2026 in U.S. District Court in Kansas would require South Bow, the Keystone Pipeline system's operator, to pay a $26.9 million civil penalty to the U.S. government and spend approximately $40 million more on accident prevention. The December 2022 rupture in Washington County, Kansas dumped nearly 13,000 barrels of heavy crude oil into a creek, making it the largest onshore crude pipeline spill in the U.S. in nine years. South Bow also would pay Kansas more than $3 million for environmental restoration; a judge must approve the settlement after a 30-day public comment period.
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