The settlement is the largest recovery in U.S. Forest Service history for a forest fire case, according to a statement from the U.S. Department of Justice.
The railroad said it had incurred a $10 million liability at the time of the fire and insurance would provide for the balance of the settlement, "They did admit negligence and did admit liability," Scott said.
After failing to properly clear the area and lack of proper spark shields, it's believed rail saws and grinders sent out hot pieces of metal that started the fire, along the Feather River Canyon north of the town of Storrie.
The agreement with the government settles claims from the Storrie fire in California in August 2000 started by sparks from equipment used by railroad track repair crews.
More than 2,600 firefighters, air tanker pilots and helicopter crews fought the Storrie fire, which burned a 56,000-acre area for three weeks.
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