Alberta band settles Wabamun oil-spill lawsuit - Action News
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Alberta band settles Wabamun oil-spill lawsuit

CN Rail will pay the Paul First Nation $10 million to settle a three-year lawsuit following a train derailment that spilled oil and chemicals into Wabamun Lake.

CN Rail will pay the Paul First Nation $10 million to settle a three-year lawsuit following a train derailment that spilled oil and chemicals into Wabamun Lake.

A CN train left the tracks 50 kilometres west of Edmonton in August 2005, pouring 1.3 million litres of bunker oil and other chemicals into the popular recreational lake.

The Paul First Nation, which is located on the lake's shore, filed the lawsuit over irreversible damage to the band's land and water, arguing they could no longer fish or hunt on or near the lake.

The band sued CN Rail for $505 million, the federal government for $200 million and the Province of Alberta for $70 million.

As part of the $10-million settlement announced Friday, the Paul First Nation will cease their lawsuit, CN Rail said in a news release.

"We believe the settlement is fair, taking into account, amongst other, the cost to continue the action and the significant time required before there would have been any resolution," Chief Daniel Paul said after the agreement was approved by the Alberta Court of Queen's Bench.

He said the money will be used to implement the band's business development plan, and that a portion of the settlement would also be distributed among the band's approximately 1,200 members.

A federal investigation concluded last year that a defective rail caused the derailment.