Overview
- The Justice Department filed a complaint and proposed consent decree on July 10, 2026 to resolve alleged Clean Water Act violations by South Bow (USA) LP and South Bow Infrastructure Operations Inc.
- Under the proposal South Bow would pay a $26,867,789 civil penalty, carry out roughly $40 million in work to strengthen pipeline integrity, and contribute over $3 million to Kansas for natural resource restoration.
- The enforcement action stems from the Dec. 7, 2022 rupture that spilled about 13,000 barrels (roughly 543,000 gallons) into Mill Creek and adjacent land, coating the creek for 3.5 miles and killing or impacting more than 2,700 animals.
- South Bow carried out cleanup after a 2023 EPA order, removing oil and restoring stream banks and habitat, and investigators reported the rupture began with a crack in a weld that grew from pressure and temperature fatigue.
- The settlement is currently proposed and will be subject to a 30-day court-supervised public comment period before a judge can approve it, a step that could shape future oversight of the Keystone system and pipeline integrity requirements.