Prince Albert, Sask., receives $5M payment from Husky Energy

The City of Prince Albert says it's received a $5-million payment from Husky Energy to pay for the losses the city has incurred from an oil pipeline spill last month.

This is the first payment the city has received from Husky Energy since an oil leak spilled about 250 cubic metres of diluted oil into the North Saskatchewan River. The spill prompted the cities of North Battleford and Prince Albert to declare a state of emergency.

• Prince Albert looks to get back 'millions' spent during Husky oil spill
• 30-kilometre waterline to Prince Albert, Sask., finished after oil spill
• Toxicologist has questions after Husky Energy water report

The city said it deposited the money into a dedicated bank account the city has opened for receiving and paying bills directly related to the spill.

Both cities were forced to shut down their water treatment plants which drew water from the North Saskatchewan River. Prince Albert has since footed the bill in setting up two alternate waterlines, one drawing water from the South Saskatchewan River and another drawing from the Little Red River.

Prince Albert has since restored regular water service to city and rural residents and businesses who are heavy users of water, such as car washes and laundromats have been reopened.

• Water service back online for rural customers near Prince Albert, Sask.

"This is a payment of good faith," said Prince Albert Mayor Greg Dionne. "Husky Energy had promised from the onset that they would take full responsibility for the oil spill and pay all associated costs, and this payment is a good indicator that they are delivering on that promise."

Since the oil spill, Prince Albert lost water revenue, and was forced to temporarily close many city facilities and paying additional staffing costs during the crisis.

The city said it invoiced around $2.5 million to Husky Energy to date and is expecting over $2 million per month in costs to maintain the operation of its two temporary waterlines until the North Saskatchewan River is cleared by the Water Security Agency (WSA) for potable water consumption.

On Monday, the WSA said test results from the North Saskatchewan River indicate the water is safe for drinking, however some samples exceeded the Canadian Protection of Aquatic Life Guidelines.