Around 2,800 barrels of oil spilled from the so-called North Line near Torbert, La., in April 2012. On top of costs incurred for cleanup and repairs, the company agreed to the payment to settle an alleged violation of the Clean Water Act.
Sam Hirsch, acting assistant attorney general for the Justice Department's environmental division, said the settlement is a just response.
"Oil spills into our nation's waters endanger public health and the environment and warrant concerted enforcement efforts," he said in a statement Tuesday.
The U.S. Justice Department filed the settlement as a consent decree in federal court. It's subject to a 30-day comment period and court approval.
Christian Flatman, a spokesman for Exxon, said in a statement published by The Hill, the company was committed to operating its network of pipelines safely.
"We believe that this settlement provides for an acceptable outcome that avoids protracted litigation between the parties," he said.