dailynewsnblog
Listen to this article
Estimated 1 minute
The audio version of this article is generated by AI-based technology. Mispronunciations can occur. We are working with our partners to continually review and improve the results.
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 $26.9 million US related to allegations it violated the Clean Water Act.
South Bow has also agreed to spend about $40 million US to complete work to prevent similar problems in the future and pay $3 million US 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.
TC Energy spun off its oil pipeline business into South Bow in late 2024.
