The US Department of Justice (DOJ) and the Environmental Protection Agency (EPA) announced a settlement regarding a 2022 oil pipeline rupture. The settlement requires the pipeline company to pay a civil penalty of $26.9 million; complete work estimated at $40 million for prevention of similar discharges; and pay the state over $3 million for natural resource restoration.

Construction and Monitoring Failures
According to DOJ’s Complaint, the rupture occurred at a fabricated bend assembly. Construction mistakes during a 2010 project to replace fittings were the primary cause. Inadequately compacted soil under the pipe allowed it to bend after backfilling. The company performed a caliper inspection prior to replacing the fittings but did not require one after replacement. In 2013, monitoring inspections identified the bend assembly as a concern. The company neither replaced the assembly nor did any analyses to understand the assembly’s integrity.

Oil Removal in 2023
Under an EPA order issued in 2023, the company removed oil from the creek and surrounding areas and completed restoration of aquatic habitat, stream banks, and shorelines.
The settlement terms are in a proposed Consent Decree, whose comment period extends through August 14, 2026. To see DOJ’s news release, which has links to access the EPA’s settlement summary, the Consent Decree, and the Complaint https://www.justice.gov/opa/pr/justice-department-files-proposed-settlement-owner-and-operator-keystone-pipeline-resolve

Texas Environmental Superconference August 5-7
This year I shall present the case law update at the 38th Annual Texas Environmental Superconference in Austin, Texas, “A Star-Spangled Affair.” I look forward to seeing many of you in Austin August 5-7.