South Bow Safely Restarts Keystone Pipeline
South Bow has safely restarted the Keystone Pipeline after receiving regulatory approval from PHMSA, following an oil release of approximately 3,500 barrels at Milepost 171 near Fort Ransom, North Dakota on April 8, 2025.
The company repaired and replaced the affected pipe, recovered most of the released oil, and is remediating impacted soil. PHMSA issued a Corrective Action Order on April 11, 2025, requiring specific corrective actions and operating pressure restrictions, which South Bow has implemented on both US and Canadian sections. Air quality monitoring has shown no adverse health or public concerns. South Bow remains focused on cleanup and ongoing communication with regulators, customers, and the community.
South Bow ha ripreso in sicurezza le operazioni della Keystone Pipeline dopo aver ottenuto l'approvazione normativa da PHMSA, a seguito di una fuoriuscita di petrolio di circa 3.500 barili al Milepost 171 vicino a Fort Ransom, North Dakota, l'8 aprile 2025.
L'azienda ha riparato e sostituito il tratto di condotta interessato, recuperato la maggior parte del petrolio disperso e sta bonificando il terreno contaminato. Il PHMSA ha emesso un Ordine di Azione Correttiva l'11 aprile 2025, imponendo specifiche misure correttive e limitazioni alla pressione operativa, che South Bow ha applicato sia nelle sezioni statunitensi che canadesi. Il monitoraggio della qualità dell'aria non ha evidenziato rischi per la salute pubblica. South Bow continua a concentrarsi sulla bonifica e sulla comunicazione costante con le autorità, i clienti e la comunità.
South Bow ha reiniciado de manera segura el funcionamiento del Keystone Pipeline tras recibir la aprobación regulatoria de PHMSA, luego de una liberación de petróleo de aproximadamente 3,500 barriles en el Milepost 171 cerca de Fort Ransom, Dakota del Norte, el 8 de abril de 2025.
La empresa reparó y reemplazó la tubería afectada, recuperó la mayor parte del petróleo derramado y está remediando el suelo impactado. PHMSA emitió una Orden de Acción Correctiva el 11 de abril de 2025, que requiere acciones correctivas específicas y restricciones en la presión operativa, las cuales South Bow ha implementado en las secciones de EE.UU. y Canadá. El monitoreo de la calidad del aire no ha mostrado preocupaciones para la salud pública. South Bow sigue enfocado en la limpieza y en mantener comunicación continua con los reguladores, clientes y la comunidad.
South Bow는 2025년 4월 8일 노스다코타주 포트 랜섬 인근 마일포스트 171에서 약 3,500배럴의 원유 유출 사고 발생 후, PHMSA의 규제 승인을 받아 Keystone Pipeline의 안전한 가동을 재개했습니다.
회사는 영향을 받은 파이프를 수리 및 교체하고, 유출된 원유 대부분을 회수했으며 오염된 토양을 정화 중입니다. PHMSA는 2025년 4월 11일 구체적인 시정 조치와 운영 압력 제한을 요구하는 시정 명령을 발령했으며, South Bow는 미국과 캐나다 구간 모두에 이를 시행했습니다. 대기 질 모니터링 결과 건강이나 공공 안전에 대한 우려는 나타나지 않았습니다. South Bow는 정화 작업과 규제 기관, 고객, 지역사회와의 지속적인 소통에 집중하고 있습니다.
South Bow a repris en toute sécurité le fonctionnement du Keystone Pipeline après avoir obtenu l'approbation réglementaire de la PHMSA, suite à un déversement d'environ 3 500 barils de pétrole au Milepost 171 près de Fort Ransom, Dakota du Nord, le 8 avril 2025.
L'entreprise a réparé et remplacé la conduite endommagée, récupéré la majeure partie du pétrole déversé et est en train de remédier aux sols impactés. La PHMSA a émis un ordre d'action corrective le 11 avril 2025, exigeant des mesures correctives spécifiques et des restrictions de pression opérationnelle, que South Bow a mises en œuvre sur les sections américaines et canadiennes. La surveillance de la qualité de l'air n'a révélé aucun risque pour la santé publique. South Bow reste concentrée sur le nettoyage et la communication continue avec les régulateurs, les clients et la communauté.
South Bow hat die Keystone Pipeline nach Erhalt der behördlichen Genehmigung durch die PHMSA sicher wieder in Betrieb genommen, nachdem am 8. April 2025 in Milepost 171 nahe Fort Ransom, North Dakota, etwa 3.500 Barrel Öl ausgelaufen waren.
Das Unternehmen hat die betroffene Rohrleitung repariert und ersetzt, den Großteil des ausgelaufenen Öls geborgen und kontaminierten Boden saniert. Die PHMSA erließ am 11. April 2025 eine Anordnung zur Korrekturmaßnahmen mit spezifischen Vorgaben und Betriebsdruckbeschränkungen, die South Bow sowohl in den US-amerikanischen als auch kanadischen Abschnitten umgesetzt hat. Die Luftqualitätsüberwachung zeigte keine gesundheitlichen oder öffentlichen Bedenken. South Bow konzentriert sich weiterhin auf die Reinigung und die fortlaufende Kommunikation mit Regulierungsbehörden, Kunden und der Gemeinschaft.
- Keystone Pipeline safely restarted after regulatory approval, minimizing operational downtime.
- Most of the 3,500 barrels of released oil have been recovered, reducing environmental impact.
- Air quality monitoring shows no adverse health or public concerns.
- South Bow is actively communicating with stakeholders and regulators, supporting transparency.
- Incident resulted in an oil release of approximately 3,500 barrels, requiring emergency response and cleanup.
- PHMSA imposed operating pressure restrictions on Keystone, potentially limiting throughput and revenue.
- Ongoing remediation and corrective actions may increase operational costs.
- Event could impact reputation and regulatory scrutiny for SOBO.
Insights
The restart of South Bow's Keystone Pipeline marks a crucial operational recovery following the April 8th oil release incident. With PHMSA's regulatory approval secured, the company has demonstrated effective incident response capabilities by completing repairs and restarting operations within approximately 8 days - a relatively quick turnaround for a significant pipeline incident.
However, the operating pressure restrictions mandated by regulators on both U.S. and Canadian sections present ongoing operational challenges. Such restrictions typically result in reduced throughput capacity, potentially affecting revenue generation until normal operations resume. The company's commitment to implementing these restrictions across its system indicates a conservative approach to safety following the incident.
The 3,500-barrel release represents a moderate-sized spill by industry standards. While South Bow reports recovering "substantially most" of this volume, this deliberately vague language suggests complete recovery wasn't achieved. The ongoing soil remediation efforts will continue to require resource allocation over the coming weeks or months.
From an operational perspective, the pipeline was reportedly operating within design and regulatory parameters when the incident occurred, which raises questions about potential underlying infrastructure vulnerabilities or maintenance needs that might require additional capital expenditure. The relatively swift regulatory approval for restart suggests regulators are satisfied with the company's response measures and identified root cause.
South Bow's management of the Fort Ransom incident demonstrates relatively effective environmental crisis response. The company's reporting indicates successful containment and substantial recovery of the 3,500-barrel release, though the specific recovery percentage remains undisclosed - an important detail investors should watch for in future disclosures.
The continuous air quality monitoring showing no adverse health impacts is particularly significant from a liability standpoint, as it may limit potential claims related to community exposure. However, the soil remediation phase typically represents the most time-consuming and costly component of pipeline spill responses, with expenses potentially extending for months depending on soil conditions and contamination depth.
The Corrective Action Order (CAO) from PHMSA represents a formal regulatory response that, while allowing operations to continue, indicates heightened scrutiny. These orders typically require comprehensive documentation of incident causes and corrective measures, potentially revealing additional maintenance needs across the Keystone system.
From a comparative perspective, this incident appears to have been managed more effectively than some historical pipeline spills of similar magnitude. The absence of waterway impacts (not mentioned in the release) significantly reduces environmental complexity and remediation costs. The swift restart authorization from PHMSA suggests regulators view the incident as isolated rather than indicative of systemic integrity issues - a positive signal for South Bow's operational risk profile.
CALGARY, Alberta, April 16, 2025 (GLOBE NEWSWIRE) -- South Bow Corp. (TSX & NYSE: SOBO) (South Bow or the Company) has safely restarted the Keystone Pipeline (Keystone) after receiving regulatory approval from the Pipeline and Hazardous Materials Safety Administration (PHMSA), following South Bow's response to an oil release at Milepost 171 (MP-171) of Keystone on April 8, 2025, near Fort Ransom, North Dakota.
South Bow is actively progressing its response and recovery efforts, having repaired and replaced the impacted pipe, and recovered substantially most of the estimated release volume of 3,500 barrels of oil, working now to remediate the impacted soil. South Bow's primary focus remains the safety of onsite personnel and mitigating risks to the environment and the community surrounding Fort Ransom. South Bow will continue its clean-up activities until the site has been fully remediated, with continuous air quality monitoring steadily showing no indication of adverse health or public concerns. South Bow will continue working closely with regulators, local officials, landowners, and the community.
Corrective Action Order
On April 11, 2025, PHMSA issued a Corrective Action Order (CAO), requiring South Bow to undertake certain corrective actions in response to the MP-171 incident. As part of the CAO, South Bow developed a restart plan that was subsequently approved by PHMSA, authorizing Keystone's return to service under certain operating pressure restrictions. South Bow is committed to the safe operation of Keystone and has notified the Canada Energy Regulator that the Company is also implementing certain operating pressure restrictions on the Canadian sections of the pipeline. The pipeline was operating within its design and regulatory approval requirements at the time of the incident. In addition to working closely with regulators, South Bow will work closely with customers during Keystone's return to service.
South Bow will continue providing timely updates as information becomes available on its website at www.southbow.com/incident-response.
Forward-looking information and statements
This news release contains certain forward-looking statements and forward-looking information (collectively, forward-looking statements), including forward-looking statements within the meaning of the "safe harbor" provisions of applicable securities legislation, that are based on South Bow's current expectations, estimates, projections, and assumptions in light of its experience and its perception of historical trends. All statements other than statements of historical facts may constitute forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as, "anticipate", "will", "expect", "estimate", "potential", "future", "outlook", "strategy", "maintain", "ongoing", "intend", and similar expressions suggesting future events or future performance. In particular, this news release contains forward-looking statements, including with respect to response, recovery and clean-up efforts; notification and forthcoming updates regarding the oil release; and regulatory, landowner, community, and customer engagement.
The forward-looking statements are based on certain assumptions that South Bow has made in respect thereof as at the date of this news release regarding, among other things: oil and gas industry development activity levels and the geographic region of such activity; that favourable market conditions exist and that South Bow has and will have available capital to fund its capital expenditures and other planned spending; prevailing commodity prices, interest rates, inflation levels, carbon prices, tax rates, and exchange rates; the ability of South Bow to maintain current credit ratings; the availability of capital to fund future capital requirements; future operating costs; asset integrity costs; that all required regulatory and environmental approvals can be obtained on the necessary terms in a timely manner; and prevailing regulatory, tax, and environmental laws and regulations.
Although South Bow believes the assumptions and other factors reflected in these forward-looking statements are reasonable as of the date hereof, there can be no assurance that these assumptions and factors will prove to be correct and, as such, forward-looking statements are not guarantees of future performance. Forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual events or results to differ materially, including, but not limited to: the regulatory environment and related decisions and requirements; the impact of competitive entities and pricing; reliance on third parties to successfully operate and maintain certain assets; the strength and operations of the energy industry; weakness or volatility in commodity prices; non-performance or default by counterparties; actions taken by governmental or regulatory authorities; the ability of South Bow to acquire or develop and maintain necessary infrastructure; fluctuations in operating results; adverse general economic and market conditions; the ability to access various sources of debt and equity capital on acceptable terms; and adverse changes in credit. The foregoing list of assumptions and risk factors should not be construed as exhaustive. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the results implied by forward-looking statements, refer to South Bow's annual information form dated March 5, 2025, available under South Bow's SEDAR+ profile at www.sedarplus.ca and, from time to time, in South Bow's public disclosure documents, available at www.sedarplus.ca, www.sec.gov, and on South Bow's website at www.southbow.com.
The forward-looking statements contained in this news release speak only as of the date hereof. South Bow does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Contact information
| Investor Relations Martha Wilmot investor.relations@southbow.com | Media Relations & Community Enquiries Solomiya Lyaskovska communications@southbow.com |
FAQ
What happened to the SOBO Keystone Pipeline in April 2025?
Has the Keystone Pipeline operated by SOBO been restarted after the April 2025 oil release?
What corrective actions did SOBO take after the April 2025 Keystone Pipeline incident?
Are there operating restrictions on the SOBO Keystone Pipeline after the April 2025 incident?
Is there any health or environmental risk following the SOBO Keystone Pipeline oil release in April 2025?
How is SOBO communicating about the Keystone Pipeline incident and recovery?
