South Bow L.P. CWA Settlement Summary
On July 10, 2026, the U.S. Environmental Protection Agency, the U.S. Department of Justice, and the state of Kansas announced a Clean Water Act settlement agreement with South Bow L.P. and South Bow Infrastructure Operations Inc. regarding the December 2022 discharge from the Keystone Pipeline in Washington, Kansas. The violations under CWA section 311(b) resulted from the rupture in the pipeline, causing the discharge of approximately 12,937 barrels of crude oil overland and into Mill Creek near Washington, Kansas.
The complaint alleges that the pipeline rupture resulted from years of undetected stress on the pipeline. The settlement, valued at $69 million requires the two companies to pay over $26 million in civil penalties and perform work, valued at $40 million to strengthen prevention and detection processes. The companies also agreed to contribute over $3 million to the state of Kansas for natural resource restoration projects and to resolve violations of Kansas state laws.
Summary of Violations
Section 311(b) of the Clean Water Act prohibits discharges of oil and designated hazardous substances in harmful quantities into U.S. waters, adjoining shorelines, or the contiguous zone, and requires prompt reporting and removal. On December 7, 2022, a rupture in the Keystone Pipeline near Washington, Kansas resulted in the discharge of approximately 12,937 barrels of crude oil overland and into Mill Creek. The rupture was caused by stress on the pipeline which went undetected over many years. The substance discharged from the ruptured pipeline was diluted bitumen, also known as “dilbit.” Bitumen is a heavy and viscous petroleum crude oil. The discharge of oil constituted a violation of the Clean Water Act Section 311(b).
Overview of the Consent Decree
Under the consent decree, South Bow will pay a civil penalty of more than $26.8 million, which will be deposited into the Oil Spill Liability Trust Fund.
Additionally, South Bow will spend approximately $40 million on strengthening its processes for prevention and detection of stress on the Keystone Pipeline, with the goal of reducing the likelihood of a future similar discharge. The injunctive relief accounts for the corrective actions South Bow has already undertaken. The work to strengthen prevention and detection processes includes robust procedures, training, and pipeline specifications intended to reduce the risk of spills. Additionally, this effort will provide for inspection schedules, operational limits, and integrity, reliability, and engineering assessments.
Comment Period
The consent decree was filed with the U.S. District Court for the District of Kansas and is subject to a 30-day public comment period. Information on submitting comments and the complaint and the proposed consent decree are available on the Justice Department’s Proposed Consent Decree webpage.
Contact Information
For further information about this settlement, please contact:
Kelly Brantner, Senior Attorney
Office of Civil Enforcement
brantner.kelly@epa.gov
Katie Gulley, Attorney-Adviser
Office of Regional Counsel
U.S. Environmental Protection Agency, Region 7
gulley.katherine@epa.gov