DOJ proposes CWA settlement over 2022 Keystone rupture in Kansas: $26,867,789

The Justice Department, acting on behalf of the Environmental Protection Agency (EPA) and the State of Kansas, filed a Clean Water Act complaint and lodged a proposed consent decree on July 10, 2026 to resolve alleged violations tied to a 2022 Keystone Pipeline rupture in Washington County, Kansas.

The agreement is not final. It would require a public comment period and then approval by the U.S. District Court for the District of Kansas.

What DOJ alleges happened in the 2022 rupture

DOJ says the rupture began on Dec. 7, 2022, when at least 12,937 barrels of heavy crude oil (about 543,354 gallons) leaked from the pipeline and flowed into Mill Creek.

According to DOJ, crude oil covered the Mill Creek banks “bank-to-bank” for about 3.5 miles downstream of the rupture. DOJ also says a Kansas Department of Health and Environment (KDHE) stream advisory prohibited contact with the creek by people, livestock, or pets, and that oil residue was found in the 35 acres surrounding the discharge.

DOJ further alleges the spill killed or impacted more than 2,700 animals. DOJ says cleanup and restoration followed after an EPA cleanup order.

Who the case targets

The proposed federal enforcement action targets South Bow (USA) LP and South Bow Infrastructure Operations Inc., identified by DOJ as the owner and operator of the Keystone Pipeline section involved in the rupture.

What the proposed settlement would require

Civil penalty: The lodged consent decree would require South Bow to pay $26,867,789 as a civil penalty.

Prevention and detection work: DOJ says the company would complete estimated $40 million in work designed to prevent future similar discharges. The consent decree also sets out injunctive relief intended to strengthen pipeline integrity and operational reliability, including integrity threat assessments, operational limits, thermal stress assessments, post-incident review procedures, pipe movement detection, and related reporting.

Kansas natural-resource restoration: The consent decree would require a $3,080,000 contribution to subsidize supplemental environmental projects (SEPs) approved by KDHE for natural resource restoration activities under Kansas law.

Deadlines and penalties: The decree includes stipulated penalties for noncompliance with specified obligations and reporting requirements.

What happens next

The consent decree is subject to a 30-day public comment period. On DOJ’s case page, the comment-period dates are listed as “To Be Scheduled,” with public comments submitted according to instructions in the related Federal Register notice.

After the comment window closes, the proposal would still need court approval before it becomes final—meaning the complaint’s allegations and the settlement terms remain “proposed” at this stage.

Sources

• DOJ Office of Public Affairs (July 10, 2026): Proposed Clean Water Act settlement filing—South Bow Keystone rupture
• EPA: South Bow L.P. CWA settlement summary