The U.S. Justice Department has reached a settlement agreement with South Bow Corp. regarding a 2022 rupture of the Keystone pipeline.
The Department of Justice seal is seen during a news conference at the DOJ office in Washington, May 16, 2023. CALGARY — The U.S. Justice Department has reached a settlement agreement with pipeline company South Bow Corp. regarding a 2022 rupture of the Keystone pipeline that spilled nearly 13,000 barrels of oil.
Under the deal, the company will pay a civil penalty of US$26.9 million related to allegations it violated the Clean Water Act.has also agreed to spend about US$40 million to complete work to prevent similar problems in the future and pay US$3 million to Kansas for natural resource restoration projects to resolve violations of state laws. The Keystone Pipeline system runs from Hardisty, Alta. , to Port Arthur, Texas.
The rupture happened on Dec. 7, 2022, in a section of the pipeline that stretches from Steele City, Neb. , to Cushing, Okla. , and sent oil into Mill Creek. Following a 2023 cleanup order, the company removed oil from the creek and surrounding areas and completed restoration of aquatic habitat, stream banks and shorelines.
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