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Settlement Reached Over 2022 Keystone Pipeline Oil Spill Costs $26 Million

KVIA•Friday, July 10, 2026 at 3:44 PM•CNN Newsource

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The Trump administration has finalized a $26 million settlement with South Bow LP, the operator of the Keystone Pipeline, following a significant oil spill in December 2022 that released over 540,000 gallons of crude oil in Kansas. The agreement includes a civil penalty and an additional $40 million for infrastructure improvements to prevent future spills. Moreover, South Bow LP will pay $3 million to Kansas for environmental restoration efforts. This spill, the largest in the pipeline's history, severely impacted local wildlife, affecting around 2,700 animals and damaging waterways. The settlement underscores the importance of maintaining oil pipeline safety to avoid similar environmental disasters.

Key Details: • Settlement includes a $26 million civil penalty and $40 million for future safety improvements. • South Bow LP to pay an additional $3 million for environmental restoration in Kansas. • The 2022 spill was the largest from the Keystone Pipeline, affecting 2,700 animals.

environment settlement trump-administration oil-spill keystone-pipeline

People & Organizations

Donald TrumpDepartment of JusticeKansasEnvironmental Protection AgencyRyan KriegshauserJeffery HallSouth Bow LP

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